CirVath International Journal of Tourism ASEAN

6

Les Cahiers Internationaux du Tourisme CirVath International Journal of Tourism ASEAN

Centre International de Recherche Vatel en Tourisme et HĂ´tellerie

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Dr. Sompid Kattiyapikul N

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FOREWORD

FOREWORD

© CirVath ASEAN – International Journal of Tourism – N° 6

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FOREWORD

Mr. Alain Sebban President and Founder of Vatel Group

CirVath, is a research center promoting creativity and innovation within Vatel Group. Professionals currently working in the international hospitality industry want to hire newly graduated students who have a large capacity for innovation. This is the reason why Vatel created a research center called CirVath (Vatel International Research Center in Tourism and Hospitality) promoting the science of tourism based on research and creation. The aim of the group is to work on applied research themes, to bring in fresh ideas and find solutions to current issues.

Since 2003, CirVath has been producing its own scientific publications and organizing seminars. Research work is conducted by professors and researchers from Vatel, by those in partner universities and by some of our students and professionals. I am therefore delighted to see this important version of CirVath for the ASEAN region that may highlight further regional issues in the management of hospitality services and ultimately stimulate further discussion within the whole group.

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FOREWORD

Asst. Prof. Dr. Sompid Kattiyapikul

Editor In Chief of CirVath ASEAN, co founder of Vatel Thailand and Vice President of Silpakorn University for International Affairs

Vatel International Business School now has a presence in 4 ASEAN countries; Thailand, Philippines, Vietnam and Singapore. In 2015, ASEAN will integrate the whole of Southeast Asia into the ‘ASEAN Economic Community (AEC)’, with free movement of goods, services, investment, labour, and capitals. This will present the nations of Southeast Asia with excellent opportunities with which tourism will play a major contributing factor to the development of each country. It is therefore imperative that ASEAN develops a coherent and sustainable policy for tourism throughout the region.

With this in mind, education plays a crucial role in hospitality and tourism by providing the right skills, competencies and knowledge for employees. As the leading school in Hospitality Education around the world, it is important for Vatel to create our own research and publications on relevant topics. Therefore in this first ASEAN edition, we highlight some of the major issues currently confronting the hospitality and tourism industry.

Finally I would like to thank Mr. and Mrs. Sebban, as well as Mr. Magne for their continued support since the creation of Vatel Thailand in 2003. It is with their guidance and encouragement that Vatel has been able to succeed in Thailand and throughout the ASEAN region.

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TRAVEL TRENDS AND THE IMPACT OF TOURISM ON THE ASEAN REGION

TRAVEL TRENDS AND THE IMPACT OF TOURISM ON THE ASEAN REGION Mr. Henri Magne

© CirVath ASEAN – International Journal of Tourism – N° 6

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TRAVEL TRENDS AND THE IMPACT OF TOURISM ON THE ASEAN REGION

Mr. Magne has been working with Vatel Group since 1992 and is currently Counselor to the Presidency of Group Vatel, prior to which he was the Director of International Development and instrumental to the creation of Vatel Thailand, and many other Vatel Schools around the world. Mr. Magne started his professional career in the hotel industry holding executive positions ranging from Hotel General Manager to Finance Director.

Abstract Travel and tourism will have a dramatic economic impact on the ASEAN region, particularly with the integration of a single economic community. As each member nation faces increased numbers of international visitors, this paper discusses some of the current travel trends in South East Asia and the types of tourists that ASEAN is trying to attract as a unified destination through its marketing strategy. The collective image of ASEAN is diverse but offers tourists the opportunity to visit different countries and cultures in a short space of time. However with the increasing numbers of tourists, ASEAN faces some important questions related to the impact of tourism on local cultures, economies, societies and environments.

Ultimately a balancing act is required of attracting visitors but also ensuring that tourism services in ASEAN are sustainable and responsible for many more years to come.

Keywords: ASEAN tourism, travel, trends, marketing, sustainability, tourists, consumer behavior, travel motivation, Socio cultural impacts

Introduction Travel & Tourism is an important economic activity in most countries around the world. As well as its direct economic impact, the industry has significant direct and indirect impacts which will briefly be discussed in this paper. David Scowsill, President and CEO of World

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TRAVEL TRENDS AND THE IMPACT OF TOURISM ON THE ASEAN REGION

Travel & Tourism Council (WTTC), said in his foreword of the Travel & Tourism Economic Impact 2013 for South East Asia, that 2012 demonstrated again the resilience of the Travel and Tourism industry in the face of continued economic turmoil, as economic growth slowed and was even negative in key global markets. However the contribution of Travel & Tourism to GDP grew for the third consecutive year in 2012 and created more than 4 million new jobs which represented 10% of all new jobs created. As the tourism industry continues to develop throughout South East Asia, this paper highlights the growth of tourism in the region as well as its impact, both positive and negative on local environments.

Tourism in South East Asia First of all it is important to understand the positive impact of tourism on the ASEAN region, and how it can contribute to the overall economy. The following facts were issued in the World Travel and Tourism Council (WTTC) 2014 annual economic report for South East Asia and Thailand. For example the total contribution of Travel & Tourism to Gross Domestic Product (GDP) in South East Asia USD 294.4bn (12.3% of GDP) in 2013, and is forecast to rise by 4.9% in 2014, and to rise by 5.5% pa to USD 525.9bn (12.6% of GDP) in 2024.

In 2013 the total contribution of Travel & Tourism to employment, including jobs indirectly supported by the industry, was 9.7% of total employment (28,661,500 jobs). This is expected to rise by 1.8% in 2014 to 29,164,500 jobs and rise by 2.6% pa to 37,785,000 jobs in 2024 (10.8% of total) Finally visitor exports generated USD 112.6bn (7.2% of total exports) in 2013. This is forecast to grow by 4.5% in 2014, and grow by 5.7% pa, from 2014-2024, to USD 204.6bn in 2024 (6.8% of total)

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TRAVEL TRENDS AND THE IMPACT OF TOURISM ON THE ASEAN REGION

Example of GDP in Thailand The total contribution of Travel & Tourism to GDP was THB 2,401.1bn (20.2% of GDP) in 2013, and is forecast to rise by 0.1% in 2014, and to rise by 6.4% pa to THB 4,472.5bn (22.7% of GDP) in 2024 In 2013, the total contribution of Travel & Tourism to employment, including jobs indirectly supported by the industry, was 15.4% of total employment (6,011,500 jobs). This is expected to fall by 5.1% in 2014 to 5,703,500 jobs and rise by 4.4% pa to 8,739,000 jobs in 2024 (20.5% of total) Visitor exports generated THB 1,395.6bn (16.0% of total exports) in 2013. This is forecast to fall by 1.1% in 2014, and grow by 7.3% pa, from 2014-2024, to THB 2,784.8bn in 2024 (13.9% of total) Comparing the rankings of Thailand with 10 other South East Asian countries and the world average on the long term growth, 2013-2023: Long term growth : 2013 – 2023 Items

World Average

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Direct contribution to GDP

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TRAVEL TRENDS AND THE IMPACT OF TOURISM ON THE ASEAN REGION

Long term growth : 2013 â&#x20AC;&#x201C; 2023 Items

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Source: WTTC Travel & Tourism Economic Impact 2013 * SEA (South East Asia): Philippines, China, Cambodia, Malaysia, Indonesia, Vietnam, Singapore, Australia, New Zealand, Thailand.

Types of Tourists Undoubtedly ASEAN will be appealing to special interest travelers who rank the arts, heritage or other cultural activities as one of the main reasons for traveling. Cultural tourism is an important component of international tourism in our world today with tourists motivated to travel by music, arts, festivals, cuisine, cultural events, heritage sites and monuments. Growing trends demonstrate an interest for tourists to immerse themselves and enjoy the lifestyle of local people, an area and what constitutes its identity and character. It

TRAVEL TRENDS AND THE IMPACT OF TOURISM ON THE ASEAN REGION

should also be recognized that other global trends include growth in markets of the youth sector and increased usage of social media and mobile technology throughout hospitality and tourism (ITB, 2013).

Different kinds of tourists are attracted to ASEAN for other motivational reasons and Thailand is perhaps a good example of a country in ASEAN handling a wide variety of international tourists.

As well as traditional established travel markets, new rapidly increasing emerging ones such as Russia, China and India, as well as inter regional travel between ASEAN countries. As a destination, Asia had a strong year in 2013, with international arrivals up by 6.3% between January and August, according to figures from the World Tourism Organization. South-East Asia was actually the best performer with a 12% increase following a 9% growth in 2012. This highlights the changing trends of tourists. It also makes destination marketing a complex process involving various stakeholders and organizations.

Travel Motivators

ASEAN focuses on the physical tangible attributes of the region and also the experiential side through the local people, lifestyles and communities. Tourism in ASEAN makes an emotional connection with targeted tourist segments and this is resonated in the slogan â&#x20AC;&#x2DC;South East Asia- Feel the Warmthâ&#x20AC;&#x2122;. Much of this warmth is not only represented literally by the climate, but mainly by the friendly hospitable people of ASEAN, from staying in a luxurious 5 star international hotel, a cheap guest house, couchsurfing or travelling through a poor rural village. By combining all the elements associated with ASEAN together, the brand image represents a diverse, exotic, tropical destination that offers attractive value, a mixture of different experiences and ways of life.

Many different tourist groups whether it be mass leisure, aspects of voluntourism, adventure, business, long stay, experiential and

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TRAVEL TRENDS AND THE IMPACT OF TOURISM ON THE ASEAN REGION

community based tourism, are attracted to the region for a number of reasons including:

Incredible landscapes and vibrant urban areas from islands and pristine beaches to mountains, dramatic rivers, rainforest jungle, wildlife, flora and fauna, bustling modern vibrant cities, quiet unspoilt countryside and traditional rural villages.

Culture and Heritage including arts, music, unique cuisine, festivals,

handicrafts, UNESCO World Heritage sites, Indochinaâ&#x20AC;&#x2122;s colonial past, temples and monuments, museums and galleries, indigenous groups, cultural traditions and lifestyles â&#x20AC;&#x201C; different beliefs, values and religious systems.

Activities and services such as shopping in modern malls to local traditional markets, entertainment, sports, trekking, health and wellness, medical treatment.

ASEAN Marketing Strategy ASEAN has to determine their target audiences carefully in relation to their services and this has already been outlined in ASEANâ&#x20AC;&#x2122;s Tourism Marketing Strategy 2011-2015. Strategic marketing includes conducting situational analysis, looking at trends and market research so there is a better understanding of tourists wants and needs from target groups. Consumer behavior is a very complex issue, as it involves the decision making process tourists go through in order to buy a service. How a customer perceives a service relies heavily on its positioning to create the right image in the mind of the target audience through good communications. Much of this blends elements of psychology and social factors so that tourists are motivated enough to purchase it. Of course once the product has been purchased we also need to ensure that customer expectations are met and hopefully exceeded in the delivery of the service, so that their needs are satisfied.

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TRAVEL TRENDS AND THE IMPACT OF TOURISM ON THE ASEAN REGION

It should be noted that the growth in tourist numbers also coincided with social, technological and economic advances on a global level, particularly with the increased usage of the internet and social media for tourism information services, or booking cheaper and more accessible travel. Thanks to these developments, tourists have become more educated and travel savvy, looking for a better service, good value, and experiences that are authentic and meaningful. This has presented ASEAN with a difficult challenge to position 10 different countries with a collective image, as the right one influences an individualâ&#x20AC;&#x2122;s behavior, attitude, feelings and preference towards a tourism product. In order to arouse interest and provide a stimulus for travel, ASEAN demonstrates the wonderful diversity of the 10 connected countries and stresses the short traveling distance between them. ASEAN aims to highlight the differences of tourism provisions and services in each country, whilst less desirable images in some locations relating to poverty, sanitation, security, pollution and sex tourism are handled realistically and sensitively.

ASEAN Tourism and Sustainability ASEAN as a collective unit can help promote the region to the advantage of all member nations with a clear strategic marketing plan and cooperation, but it will only be effective if each country has their own successful strategy running in synergy with ASEANâ&#x20AC;&#x2122;s efforts. It also means that as tourism arrivals increase, each country in ASEAN needs to develop the right infrastructure and service standards to accommodate international travelers, especially as some countries are at different maturity levels than others. Tourism is a good source of revenue that can be of benefit to both local and national economies, so whichever tourism product is delivered, it is essential that tourism is responsible and ethical for those that supply the service and for those that participate in it.

Unfortunately though, tourism can be a double edged sword by causing damage to natural environments, creating negative socio

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TRAVEL TRENDS AND THE IMPACT OF TOURISM ON THE ASEAN REGION

cultural impacts and exploiting local communities, whilst other not so welcome economic factors may provide leakages of expenditure and increasing prices of real estate that local people cannot afford. In more popular destinations as hotels and infrastructure spring up around the attraction, the destination can quickly start to lose its appeal through ‘overdevelopment’ with overcrowding, busy traffic, pollution and general damage to the natural environment.

All types of travelers also have a huge responsibility to be ‘green’ and ethical, whether they are Mass, Elite, Explorers or Alternative tourists, so education plays an important role in raising awareness as well in following international principles from UNESCO and the World Tourism Organization. The concept of sustainable tourism has gained a large amount of support, particularly in the ‘Western World’ and this is something that tourism organizations need to be aware of. For example 93% of Conde Nast Traveler readers surveyed in 2011 (Centre for Responsible Travel, online) believed that travel companies should be responsible for protecting the environment, and Nielsen’s Market Research Survey in 2012 found that 66% of consumers around the world prefer to buy services from companies that have implemented programs that give back to society, and Forty-six percent are willing to pay extra for those with good Corporate Socially Responsible schemes.

Sustainability is a wide complex concept with many conflicting factors to consider, however it needs to be supported throughout the process of tourism planning and its implementation for the ASEAN region as a positive experience for tourists, tourism organizations and local people. With better education on sustainability it is hoped that all stakeholders involved in tourism will behave and act accordingly so that future generations can appreciate the wonders of ASEAN, whilst minimizing the impacts of tourism on culture and our environments.

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TRAVEL TRENDS AND THE IMPACT OF TOURISM ON THE ASEAN REGION

Conclusion With a plethora of existing tourism services and new ones being developed, it is possible for tourists to visit more than one country during the same trip. ASEAN tourism reminds us that there are very few places in the world where you can travel for one or two hours and encounter totally different experiences. To some travelers the attraction of ASEAN will be to stay in modern hotels with convenient facilities, whilst to others it will be exploring the local way of life and traditions. Through its diversity, ASEAN is in the fortunate position to welcome target groups of tourists and establish a strong reputation as a leading destination in Asia. However all stakeholders involved in the process of tourism need to apply the concept of sustainability so that strategic tourism is to the benefit of everyone concerned.

References ASEAN Tourism Marketing Strategy 2012-115, Jakarta: ASEAN Secretariat, March 2012 ITB World Travel Trends Report 2013/14, http://www.itbberlin.de/ media/itbk/itbk_media/itbk_pdf/WTTR_Report_2014_ Web.pdf, accessed online March 2014 Centre for Responsible travel, The case for Responsible Travel: Trends and statistics, www.responsibletravel.org/news/ Fact_sheets/Crest_RTI_TrendStats_print_1_4%20%283% 29.pdf, accessed online February 2014 World Tourism Association (2013), UNWTO Annual report 2013, http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/pdf/ann ual_report_2013.pdf, accessed online February 2014

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TRAVEL TRENDS AND THE IMPACT OF TOURISM ON THE ASEAN REGION

World Travel & Tourism Council, Travel & Tourism Economic Impact 2014, South East Asia, http://www.wttc.org/site_media/ uploads/downloads/southeast_asia2014.pdf, accessed online March 2014 World Travel & Tourism Council, Travel & Tourism Economic Impact 2014, Thailand, http://www.wttc.org/site_media/uploads/ downloads/thailand2014.pdf, accessed online March 2014

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HOSPITALITY TRAINING IMPLICATIONS FOR THAILAND AND ASEAN

AN INVESTIGATION INTO THE TRAINING NEEDS OF THE HOSPITALITY INDUSTRY: IMPLICATIONS FOR THAILAND AND ASEAN Asst. Prof. Dr. Sompid Kattiyapikul Silpakorn University, Thailand s.kattiyapikul@vatel.co.th

© CirVath ASEAN – International Journal of Tourism – N° 6

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HOSPITALITY TRAINING IMPLICATIONS FOR THAILAND AND ASEAN

Ms. Kattiyapikul is co founder of Vatel Thailand, and Vice President of International Affairs and Special Projects at Silpakorn University.

Ms. Kattiyapikul was also previously Director of Silpakorn University International College and has a Doctorate in Teaching French for Tourism, Université de Franche-Comté (UFC), France.

Abstract The Association of South East Asian Nations (ASEAN) is currently stressing the importance of international education to prepare and adapt for the changes that will take place across the region in 2015 with the development of the ASEAN Economic Community. Tourism will play a major role in the growth in the economy of ASEAN, but this growth will also require a skilled labour force throughout the hospitality and tourism industry in order to meets the wants and needs of tourists. With this in mind, ASEAN looks towards education to provide the skill sets and trained personnel for the future, which also presents hospitality schools with training opportunities throughout the region.

Keywords: ASEAN, Thailand, Education, Tourism, Hospitality, Training, Human Resources

ASEAN Tourism As ASEAN prepares for a single Economic Community in 2015, tourism is considered one of the main ways to unify the region and promote itself as an integrated ‘World Class’ tourism destination.

South East Asia is richly endowed with cultural assets, attractions and diverse landscapes, so the aim of National Tourism Organisations (NTO’s) and stakeholders in ASEAN is to work together and promote the region to tourists from within and further afield. Tourism should be seen as a welcome opportunity for ASEAN, as it will generate revenue, develop infrastructure and link tourism services across

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HOSPITALITY TRAINING IMPLICATIONS FOR THAILAND AND ASEAN

member nations so that tourists can visit more than one country at a time.

Thailand is a good example of an ASEAN country already facing issues of increasing numbers of international tourism arrivals. In fact in 2013 the Tourism Authority of Thailand expected over 25 million international visitors and the industry in general is growing at a rapid rate to meet the needs of international tourists, particularly those from new markets such as China, Russia, India and the Middle East. The Thai Hotels Association (THA), estimated that there were 3,919 new hotel rooms developed in 2013, mainly four- and five-stars, whilst Jones Lang LaSalle's Hotels and Hospitality Group projects that approximately another 8,000 new rooms are planned in Bangkok alone before 2015.

International hotel chains are investing a large amount of capital not only into Thailand, but also generally around the ASEAN region with new opportunities and markets opening up all the time. Importantly the hospitality and tourism industries are also looking towards hospitality education and making the industry sustainable for many years to come. The hotel industry for example requires skilled labour to fill the vacant positions currently being created by such widespread development. The industry therefore looks to work in partnership with hospitality education to develop the future managers of the industry and solve human resources issues.

Hospitality Training Approaches To obtain the knowledge and skills in preparation for a career in tourism and hospitality in the ASEAN region, five different types of tourism educational establishments or higher education institutions can be identified, ranging from non-governmental organizations (NGO), hospitality/cooking schools and university degree in tourism and hospitality (Jacquemin & Rieder, 2009):

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HOSPITALITY TRAINING IMPLICATIONS FOR THAILAND AND ASEAN

1. Vocational Education and Training school 2. Hospitality and Tourism institutions 3. Institutions non specialized in tourism and hospitality (foreign languages, IT, management, etc.)

4. Universities with a tourism degree (reception and travel organization, tourism development and tourism management) 5. Universities without a tourism degree (linked with tourism) Jacquemin & Rieder (2009) also noted that the various forms of knowledge delivery have tradeoffs, for example, the numerous public schools cannot reach the level of requirements expected by the private sector, while vocational and training schools usually lack the necessary financial means and tourism knowledge to be effective.

National Education Systems Each member of ASEAN has its own individual systems under their respective Ministry of Education departments, but each nation is encouraging the development of international style education to provide the knowledge and skill sets to work in ever changing global environments. None more so is this apparent, than in Thailand, where during the 1980â&#x20AC;&#x2122;s and 1990â&#x20AC;&#x2122;s the growth in the Thai economy meant that there was a large demand for international programs, delivering language skills and competencies for international environments. This was also reflected in the growth of international programs as in 2002 there were only 387 international programs in Thailand, but according to the Ministry of Education by 2012 there were 1017, including 114 collaborative joint programs with international partners.

Recent data by the Office of Higher Education Commission show that there were over 20,000 foreign students in 103 Higher education institutions. The top three sending countries were China with nearly 9,000 students, Myanmar with 1,500 and Laos with over 1300.

Region wise the largest body of foreign students was from Asia representing over 17,000 and in terms of funding 15,818 foreign

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HOSPITALITY TRAINING IMPLICATIONS FOR THAILAND AND ASEAN

students were self funded whilst the remaining received scholarships from Thailand or international organizations.

Other local or national educational policies have also influenced the structure of programs including the Ministry of Educationâ&#x20AC;&#x2122;s Thailandâ&#x20AC;&#x2122;s Qualification Framework (2006) for Higher Education which now requires educational institutions to incorporate five domains of learning into their curriculums. The National Education Act of 1999 emphasized the delivery of an education system that would continuously develop teachers, and enhance the learning process through innovation and technology. The reform act of 1999 intended to shift from traditional methods of learning such as â&#x20AC;&#x2DC;roteâ&#x20AC;&#x2122; and â&#x20AC;&#x2DC;lecturingâ&#x20AC;&#x2122;, to a more student centered and lifelong approach, whilst providing more analytical and critical thinking skills.

Hospitality education in Thailand, particularly at the higher education degree level, is committed to providing programs that develop studentsâ&#x20AC;&#x2122; knowledge, cognitive and analytical skills, interpersonal skills and responsibility, ethical and moral development. Many programs combine learning elements of academic classes with practical training, thereby enhancing the studentsâ&#x20AC;&#x2122; learning experience.

According to the Education Minister Jaturon Chaisaeng (Limsamarnphun, online), the certification of technical skills is also very important as he sees a need to introduce more specific qualifications for various technical skills at a vocational certificate level. This remark by the Minister is indeed a critical situation in Thailand, and also for ASEAN. Hospitality Degree programs usually cater towards managerial competencies and require more commitment both in terms of time and finance. Vocational courses on the other hand can be flexible in delivery whilst also providing training for specialist operational positions.

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HOSPITALITY TRAINING IMPLICATIONS FOR THAILAND AND ASEAN

ASEAN and Education In 2015, ASEAN will also integrate the whole Southeast Asia region into the ‘ASEAN Economic Community (AEC)’, with free movement of goods, services, investment, labour, and capitals. This will include student mobility, credit transfers, quality assurance and research including 6,500 higher education institutions and 12 million students in 10 nations. According to a report by the Boston Consulting Group the AEC will create a large ‘consumer class’ of nearly 100 million people with an annual income of more than $5000, providing a plethora of opportunities in the region.

This will also encourage the mobility of students within the region which Dr. Rahul Choudaha defines as ‘Glocal’ (Choudha, 2012), those students that would like an international style education but prefer to stay in their home country or region. It is argued that these groups are looking for career advancement and quality of education, and it will also help to keep such talent within the region upon graduation.

The ASEAN Secretariat highlights additional training in their ASEAN 5-year work plan on Education (2011-2015) to increase the quality of education performance standards, apply lifelong learning and professional development through, whilst strengthening Cross-Border Mobility and the Internationalization of Education. Emerging educational markets in ASEAN therefore present new opportunities for institutions that offer international programs. Education is essential to create a knowledge-based society and contribute to the enhancement of ASEAN competitiveness. Education in ASEAN will help inspire a collective feeling of unity, whilst also promoting the richness of ASEAN’s history, languages, culture and common values.

‘It requires a strong university sector that has world class teaching, learning and research. It demands a vocational education and training system that is responsive to and shapes the demands of the people and the economy.’ ASEAN (2012)

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HOSPITALITY TRAINING IMPLICATIONS FOR THAILAND AND ASEAN

In accordance with these principles, ASEAN is therefore currently devising a common curricula and recommended course material for Tourism and Hospitality programs, which will allow for the transfer of credits and student mobility under a standardized regional system.

ASEAN Tourism Strategic Plan ASEAN teaching Curricula needs to be designed in correlation to the ASEAN Tourism Strategic Plan (2011-2015), which is aimed at increasing the quality of tourism services. The plan outlines sets of minimum competencies for tourism professionals who seek to work in various divisions of labour that are common across various sectors of tourism in ASEAN. Generic competencies may include: Communicate effectively on the telephone, Promote hospitality products and services, Perform basic clerical procedures, Use common business tools and technology, Access and retrieve computer-based data. This could be transferred into an example for basic competencies in Front Office such as; receive and process reservations, operate a computerized reservation system, provide accommodation services and maintain guests' financial records

Opportunities for Hospitality Education Thus additional training for hospitality and tourism, whether it be from schools or university programs, are supported by ASEAN, not just for Thailand but also across all ASEAN member countries.

Currently there is a large supply of hospitality and tourism degree programs offered by universities, but as yet, there are fewer institutions providing vocational style certification in hospitality training at an international level which the ASEAN region is in need of. This is perhaps best summarized by, Akkaphol Preuksawan (Limsamarnphun, online), adviser to the Council of Tourism Industry in Thailand who noted that in Thailand:

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HOSPITALITY TRAINING IMPLICATIONS FOR THAILAND AND ASEAN

‘The Council has started to work with the Education Ministry to prepare vocational students for jobs in the tourism, hotel and related industries. At least 12,000 hotels nationwide need more than 580,000 employees. The annual growth rate is around 10 per cent, so there is a shortage of manpower, especially at operational levels. We also have to meet the ASEAN standards on tourism, hotel and related professions’

For example Vatel Thailand, which was established in 2003 and collaborates with Silpakorn University on an international BBA Hotel Management double degree program, will investigate the possible delivery of different training certification to meet the growing hospitality industry human resources’ needs.

Conclusion Each educational institute of hospitality and tourism will have their own special training purposes and limitations under regulations from respective education ministries. However it is essential that all different kinds of education programs cater to the needs of students’, growing economies, as well as the hospitality and tourism industry.

Educational institutions in ASEAN also need to develop international strategies that not only deal with student recruitment, but also in other areas of international collaborations through the delivery of programs, credit transfers, research and student exchanges. By providing a diverse range of certification, whether it be at vocational or degree level, educational institutes can supply an ever increasing demand for hospitality and tourism industry employees throughout the ASEAN region.

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HOSPITALITY TRAINING IMPLICATIONS FOR THAILAND AND ASEAN

References ASEAN (2012) ASEAN 5 year workplan on Education 2011 -2015, ASEAN Secretariat, Jakarta, http://www.asean.org/images/ 2012/publications/ASEAN%205-Year%20Work%20Plan %20on%20Education.pdf, accessed online January 2014 Boston Consulting Group (2012) The Companies Piloting a Soaring Region http://www.set.or.th/setresearch/files/microstructur e/forum201210_report.pdf accessed online March 2013 ,

,

Choudaha, R (2012) Are you prepared for the arrival of 'glocal' students?, http://www.universityworldnews.com/article.php?story=2012 042414150188, accessed online January 2014 Jacquemin, T & Rieder, L (2009) Exploring Sub regional support measures for vocational training in the tourism hospitality sector for SMEs in the GMS. MTCO Discussion Paper.

MTCO HRD workshop, Phnom Penh, February 12-13, 2009, http://mekongtourism.org/website/wp-content/uploads/down loads/2011/01/HRD-MTCO-Discussion.pdf, accessed online January 2014 Jones Lang Lasalle (2013) Spotlight on Thailand – Hotel Investment Market http://www.joneslanglasalle.com/ResearchLevel1/ Spotlight%20on%20Thailand%20Investment%20Jan2013. pdf, accessed March 2013 ,

Ministry of Education, Thailand. (1999) National Education Act, http://www.moe.go.th/English/edu-act.htm, accessed online 2014 Ministry of Education. (2006) National Qualifications Framework for higher education in Thailand, http://www.mua.go.th/users/ tqfhed/news/FilesNews/FilesNews8/NQF-HEd.pdf,

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accessed online January 2014 Ministry of Education, Thailand (2012), Study in Thailand - International Programs in Thai Higher Education Institutions, http://inter.mua.go.th/main/index.php, accessed online January 2014 Limsamarnphun, N. Education Ministry responding to private sector's pleas for vocational training, The Nation November, 2013, http://www.nationmultimedia.com/business/EducationMinistry-responding-to-private-sectors-p-30220350.html, accessed online February 2014 Thailand Hotel Association, http://www.asianewsnet.net/2013-Abanner-year-for-Thailand-hotel-industry-42367.html, Nation Newspaper, accessed online February 2013

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OUTSTANDING ECONOMIC PROVISIONS IN COLLECTIVE BARGAINING AGREEMENTS OF SELECTED HOTELS AND RESORTS IN THE PHILIPPINES

OUTSTANDING ECONOMIC PROVISIONS IN COLLECTIVE BARGAINING AGREEMENTS OF SELECTED HOTELS AND RESORTS IN THE PHILIPPINES Mr. Geronio G. Ulayao School of Hotel, Restaurant and Institution Management De La Salle-College of Saint Benilde Manila, Philippines geronio.ulayao@benilde.edu.ph

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OUTSTANDING ECONOMIC PROVISIONS IN COLLECTIVE BARGAINING AGREEMENTS OF SELECTED HOTELS AND RESORTS IN THE PHILIPPINES

Mr. Ulayao is a faculty of De La Salle-College of Saint Benilde and currently the Dean of the School of Hotel, Restaurant and Institution Management. He teaches courses in Tourism, Human Resources Management and Marketing.

Abstract In recent years, the Philippines has seen significant decline in terms of union membership and density which is also true in the hospitality industry. Nevertheless, hotels and resorts that have traditionally been successful in industrial relations continue to flourish which resulted to successful conclusion of collective bargaining agreements. Through thematic study of the collective bargaining agreements (CBAs) of Deluxe and First-class hotels and AA and AAA resorts in the Philippines as classified by the Department of Tourism, the research outlines and analyzes the economic outcomes of bargaining and the economic provisions that stood out. The results show that while traditional economic provisions are still embodied in all CBAs, there are provisions that stand out because of their superior value and/or unique placement in the CBAs included in the study. Furthermore, these provisions are also considered as evolving because of their CBA origins and their subsequent improvement by hotels/resorts in the CBA. While the economic provisions are considered as superior and/or unique, the study did not include the manner in which they were secured or why were they made part of the collective bargaining agreement, opening an opportunity for further research.

Keywords : Industrial Relations, Labour Relations, Collective

Bargaining Agreement, Philippine Hospitality Industry, Human Resource Management

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OUTSTANDING ECONOMIC PROVISIONS IN COLLECTIVE BARGAINING AGREEMENTS OF SELECTED HOTELS AND RESORTS IN THE PHILIPPINES

Introduction

Industrial relations is the dynamic process of interaction between and among workers (represented by their union) and employer to achieve their respective goals (Edralin, 2003). Modern industrial relations in the Philippines are products of more than 250 years of history that begun during the Spanish colonial era. At present, unionism and collective bargaining are enshrined in the legal system the Philippine government. Article 2, Section 18 and Article 13, Section 3 of the Philippine Constitution of 1987 defines the rights of the workers to self-organization, collective bargaining and negotiations while Articles 211 (p. 48), 242 (p. 62), and 246-249 (pp. 63-65)of the 1974 Labor Code of the Philippines (Foz, 2004) outlines the legal backbone of Philippine industrial relations. On a wider and global scope, unionism and collective bargaining have been enshrined in international laws and promulgations which the Philippines ratified. Article 2 of the ILO Convention No. 87: Freedom of Association and Protection of the Right to Organize (1948), Article 2 of the ILO Convention No. 98: Right to Organize and Collective Bargaining (1949) and Article 2 of the ILO Convention No. 154: Collective Bargaining (1981) declared

the protection of the right of the workers to organize.

In spite of national and international laws protecting employees’ right to organize, unionism in the Philippines declined in the last decade.

Edralin (2003) documented the decrease of CBAs from 1963 to 2001 (pp. 103-104). Starting with 544 CBAs in 1963 covering 153,000 members, the number of CBAs reached an all-time high of 4,983 with a record membership of 609,000 in 1993. In 2003, the number of CBAs dropped to 3,479 covering 508,000 members (BLES, 2004a) and by 2010 further fell to 1,980 CBAs covering 320,334 members (BLES, 2011a).

Scholars of industrial relations attribute the decline to the globalization of world economy that has disposed enterprises to adopt greater flexibility – functional or numerical – in terms of labour

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OUTSTANDING ECONOMIC PROVISIONS IN COLLECTIVE BARGAINING AGREEMENTS OF SELECTED HOTELS AND RESORTS IN THE PHILIPPINES

utilization (Binghay, 2007). On functional flexibility, enterprises practice â&#x20AC;&#x153;broadening of job designs, mobility across tasks . . . enlarging the scope of individual skills, and extensive training and retraining programsâ&#x20AC;? (Binghay, 2001, cf. Binghay, 2007), while numerical flexibility entails practices such as labour subcontracting, changing work hours and hiring of casual, part-time, temporary and contract workers (Binghay, 2007). The common feature of flexible labour arrangements â&#x20AC;&#x201C; functional or numerical â&#x20AC;&#x201C; is their divergence from full-time and permanent careers, which have been taken as the standard of regular employment (Bitonio, 2004).

The decline in unionism is also observed in the Philippine hospitality industry. From 2001 to 2010, tourist arrivals in the Philippines registered yearly average of 8% with 1,796,893 arrivals in 2001 to 3,520,471 in 2010 (DOT, 2011). On the other hand, employment in hotels and restaurants across the country grew from 668,000 to 1,063,000 with a yearly average increase of 5.3% (BLES, 2001-2011).

However, despite positive growth in tourism industry and hospitality sector in the country, data from the Bureau of Labour Relations of the Department of Labour and Employment show significant decline of the number of CBAs including those in the hotel and restaurant sector.

Table 1: CBAs in unionized hotel and restaurants COLLECTIVE BARGAINING AGREEMENTS ALL HOTELS AND RESTAURANTS

YEAR 2003 2006 2008 2010

3,479 2,967 2,440 1,980

189 269 192 143

Source: BLES

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OUTSTANDING ECONOMIC PROVISIONS IN COLLECTIVE BARGAINING AGREEMENTS OF SELECTED HOTELS AND RESORTS IN THE PHILIPPINES

Bearing in mind the divergence between the growth of Philippine tourism and hospitality and the over-all decline in unionism in the country, this paper describes the economic provisions of the Rankand-File Collective Bargaining Agreements of selected deluxe/first class hotels and AA/AAA resorts as accredited and designated by the Department of Tourism (DOT). This paper also presents outstanding economic provisions that could serve as model provisions in the conduct of collective bargaining in the Philippines for both employers and labour organizations in the hospitality industry.

ethodology

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Utilizing the actual Collective Bargaining Agreements, thematic content analysis of fifteen (15) deluxe/first class hotels and AA/AAA resorts, representing 55% of the total population of CBAs for such DOT-classified establishments, was undertaken. Provisions were tabulated and analysed according to the categories of economic provisions proposed by Edralin (2003), namely, (1) salaries and wages, (2) job and wage scales, (3) health and safety benefits, (4) leaves, (5) post-employment benefits, and (6) other benefits. In presenting the data, job and wage scales were omitted as these were not included in the printed copy of CBA. Outstanding economic provisions were identified by comparing quality (amount/quantity) and/or rarity (occurrence) of similar provisions with one another.

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Collective Bargaining

Baldoz (1995, cited in Edralin, 1999, p. 2) posits that the centerpiece of Philippine Industrial Relations is the collective bargaining, a wagesetting and dispute-settlement system that ends in a Collective Bargaining Agreement (CBA) between the employees (represented by the union) and the employer. Thus, CBA is the negotiated contract

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OUTSTANDING ECONOMIC PROVISIONS IN COLLECTIVE BARGAINING AGREEMENTS OF SELECTED HOTELS AND RESORTS IN THE PHILIPPINES

concerning, among others, wages, hours of work, and all other terms and conditions of employment (Edralin, 2003). Byars and Rue (2011, p. 373) defined collective bargaining as a process that involves the negotiation, drafting, administration, and interpretation of a written agreement between an employer and a union for a specific period of time. Salamon (2000) defined collective bargaining as a method of determining terms of employment and regulating the employment relationship, which utilizes the process of negotiation between representatives of management and employees, and results in an agreement which may be applied uniformly across a group of employees.

Economic Issues in Collective Bargaining The principles, processes and outcomes of collective bargaining, anchored on the goals of trade unions, are based on four theoretical models of unionism: economic, social, political, and dualistic (Edralin, 2003). Economic theory is premised on Selig Perlman’s (Ramos, 1990) conjecture that the logical role of the trade union is to control the job situation. Therefore, the aim of collective bargaining is to secure higher wages and better terms and conditions of work.

Similarly, Allen (1954) held that the end of trade union activities is to protect and improve the general living standards of its members and not to provide workers with an exercise in self-government. Hoxie (1986) believed that the main purpose of labour unions is to protect and pursue the economic interests of its members while Rees (1973, cited in Edralin, 2003, p. 122) believed that the central role of unions is determining wage rates, wage structure, and unemployment levels.

This is what Ramos (1990) called the “rice and fish” goal of trade unions in the Philippine setting (Edralin, 2003). Dualistic theory, on the other hand, was developed by Ramos (1990), which was partly derived from Solomon B. Levine’s analysis of the Japanese experience. Levine notes that in Japan, national trade union centers devote their major concern to advancing the workers’ interest through political channels, while the local unions tend to look inward and to

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pursue the pragmatic and immediate goals of the work site. It means that trade unions in the Philippines can pursue their economic and political thrusts at the same time even at the firm level (Edralin, 2003).

Edralin (2003) presented the outcomes of collective bargaining in ten (10) major industries which included the hotel industry of the Philippines. Tomboc (2004), on the other hand, showed the outcomes of collective bargaining from the manufacturing industry, revealing significant correlations between bargaining outcomes and union characteristics. Both studies likewise showed outstanding provisions during that time.

Accordingly, this research reveals the developments and milestones in terms of the quality and quantity of economic provisions embodied the CBAs of the hotels and resorts that are part of the study.

Table 2: Across-the-board salary increases and premiums Specific Provisions

Monthly ATB Year 1 Monthly ATB Year 2 Monthly ATB Year 3

Premiums

Night differential

Min

Max

Ave

No. of Firms

260.00

1,300.00

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1,250.00

717.50

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1,250.00

721.67

12

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26%

19%

15

100% 130% 130% 160% 30%

120% 200% 160% 275% 57%

101% 147% 147% 199% 36%

15 15 15 15 15

Holiday pay differential regular holiday

exceeding 8 hours regular holiday/restday

exceeding 8 hours special holiday

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Specific Provisions

exceeding 8 hours Restday

exceeding 8 hours

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No. of Firms 15 15 15

** Amounts are in Philippine peso.

Table 2 shows that twelve unions (80%) have ATB increases for 1-3 years. For premiums, differential and overtime pay, minimum night differential pay is 10% of the basic hourly salary while the maximum is 26%. Overtime is paid at least 30% (regular overtime) of the basic hourly salary and go as high as 275% (overtime on regular holiday falling on rest day) of the employee’s basic hourly salary. Additional compensation is likewise given for work rendered aside from the employee’s workday, ranging from 30% (work on rest day) to 160% (work on rest day falling on regular holiday). It should be noted, however, that in spite of the primacy of basic wages for union members, there are still CBAs that lack this provision.

Table 3: Health and safety benefits Specific provisions

Annual general check-up Family planning program Duty meals Group life and accident insurance Medical referral Medical/dental clinic Free medicine

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Specific provisions

Safety equipment/ First-aid kit Sleeping quarters/lockers

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Table 3 reveals that the majority of CBAs have provisions for health and safety. Eleven (73%) have provisions on annual general check-up and free medicines for minor ailments. Thirteen (87%) have provisions for medical referral or medical/dental services while twelve (80%) have provisions for safety equipment/first aid kit and sleeping quarters/lockers. The provisions on health and safety benefits, particularly the medical/dental clinic / free medical consultation have been embodied in many a CBA. These provisions are seen across several industries but the provisions contained in hotel and resort CBAs are enhanced addition to the continuously-growing trend of improving the occupational safety and health standards among organized companies in the country.

Table 4: Leaves of absence Specific Provisions

Bereavement Birthday Emergency Maternity – Normal Maternity – Caesarian Paternity Sick Vacation

Max

Ave

4 1 3 60

11 1 30 67

6 1 9 61

10 8 10 15

78

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80

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No. of Firms

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OUTSTANDING ECONOMIC PROVISIONS IN COLLECTIVE BARGAINING AGREEMENTS OF SELECTED HOTELS AND RESORTS IN THE PHILIPPINES

Specific Provisions

Extended Sick Leave Personal / Study / Without pay Menstrual

Min

Max

Ave

No. of Firms

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180

108

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150 -

78 -

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Table 4 shows different types of leave enjoyed by the covered members.

Among the different type of leave, sick leave and vacation leave are the top two types of leave benefits (Edralin, 2003). Other types of leave include bereavement (67%), emergency/calamity (67%), birthday (53%), menstrual (7%), extended sick leave (33%) and personal/study leave without pay (40%).

In totality, the number of covered members leave tremendously exceeded the 5-day service incentive leave mandated by the Labour Code of the Philippines while the type of leaves increased from nine (Edralin, 2003, p. 204) to eleven with the addition of extended sick leave and personal/study/without pay leave.

Table 5: Post-employment benefits Specific provisions

Min

Max

Ave

Normal retirement Voluntary resignation Early retirement Total and permanent disability Death benefit Special cash grant Termination benefit (non-adverse)

50% 25% 25% 50% 50% 35%

154% 150% 145% 150% 150% 25,000.00 150%

105% 72% 89% 98% 98% 68%

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OUTSTANDING ECONOMIC PROVISIONS IN COLLECTIVE BARGAINING AGREEMENTS OF SELECTED HOTELS AND RESORTS IN THE PHILIPPINES

Specific provisions

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No. of Firms

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Table 5 indicates that all CBAs have provision for normal/compulsory retirement with the range of 50% to 154% of last monthly salary multiplied by the number of years in service. Eleven (73%) CBAs indicate early retirement benefit that range from 25% to 145%. A special cash grant amounting to P25,000 is given by one (7%) CBA to qualified retirees.

Other post-employment benefits include payment for voluntary resignation, retrenchment due to redundancy, death, and total and permanent disability. The provisions on post-employment benefits are shown in the works of Edralin (2003) and Tomboc (2004). However, the findings in this study indicate that the quality of post-employment benefits in the CBAs included in the study are better than the ones described in the two works.

Table 6: Other economic benefits

No. Of Firms

Other Benefits

Min

Max

Ave

Free laundry Tip distribution Service Charge Uniform provision Relief of pregnant employees

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OUTSTANDING ECONOMIC PROVISIONS IN COLLECTIVE BARGAINING AGREEMENTS OF SELECTED HOTELS AND RESORTS IN THE PHILIPPINES

Other Benefits

Min

Max

Ave

Recreational program Recreational program Christmas party Training and development SL cash conversion VL cash conversion Work permits and health certificates Auction sale Funeral assistance (employee) Signing bonus Perfect attendance Broken shift allowance % Funeral assistance (family) Rice Rice (cash) Broken shift allowance (percentage)

No. Of Firms

-

-

-

12

-

-

-

12

-

-

-

12

-

-

-

12

-

-

-

12

-

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-

12

-

-

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11

-

-

-

10

10,000.00

30,000.00

21,944.44

9

1,000.00 500.00

21,500.00 5,000.00

6,650.00 2,631.25

8 8

5%

35%

16%

8

2,000.00

10,000.00

5,400.00

5

1 6,000.00

3 12,000.00

2.2 8,300.00

5 4

20%

35%

27%

4

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OUTSTANDING ECONOMIC PROVISIONS IN COLLECTIVE BARGAINING AGREEMENTS OF SELECTED HOTELS AND RESORTS IN THE PHILIPPINES

Other Benefits Mid-year bonus (% of monthly salary) Birth financial assistance (women) Health bonus Industrial peace bonus Shuttle service Service awards Free shoes for engineering personnel Longevity bonus Compensating day-off plus premium option Temporary relief and incentive Mid-year bonus (amount) Birth financial assistance (men)

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Max

Ave

No. Of Firms

50%

50%

50%

4

1,000.00

18,150.00

6,487.50

4

1,200.00 800.00

3,800.00 500,000.00

2,833.33 233,600.00

3 3

-

-

-

3

1,000.00

8,000.00

4,000.00

3

-

-

-

2

1,200.00

5,000.00

3,100.00

2

-

-

-

2

-

-

-

2

1,500.00

3,500.00

2,500.00

2

400.00

2,500.00

1,450.00

2

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Other Benefits

Min

Max

Ave

Anniversary increase Calamity work premium Christmas bonus Eye care benefit Gift certificate Profit sharing Seniority allowance Year-end gratuity Honeymoon privilege

No. Of Firms

1,200.00

1,200.00

1,200.00

1

450.00

450.00

450.00

1

1,200.00

1,200.00

1,200.00

1

5,100.00

5,100.00

5,100.00

1

100.00 800.00

100.00 800.00

100.00 800.00

1 1 1

-

-

-

1

-

-

-

1

** Amounts are in Philippine peso.

Table 6 reveals other economic benefits not mandated by law. Significant provisions include funeral assistance, cash conversion of unused sick leave and vacation leave, bonuses and other premiums. The variety and uniqueness of additional benefits indicate maturity of the labour organization in negotiating benefits that are beyond the minimum and even beyond the conventional benefits.

Analysis of the stipulations in the CBAs of hotels and resorts included in the study reveal economic provisions that are considered outstanding in their quality (amount/quantity) and/or rarity (occurrence). The study reveals fifteen (15) outstanding provisions from four categories of economic benefits.

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Table 7: Outstanding economic provisions Health and Safety Max

No. of Establishment Firms

Provision

Min

Ave

Group life and accident insurance

15,000.00 500,000.00 129,083.33 15

Provision

Min

Leaves

Emergency 3 Extended 90 Sick Leave Personal / Study / 30 Without pay

Max

Ave

30

9

180 150

No. of Establishment Firms 10

Traders Hotel

108

5

Manila Hotel

78

6

Manila Pavilion

Ave

No. of Establishment Firms

Post-Employment Benefits Provision

Min

Max

Special cash grant

35% of Termination final salary x benefit number (nonof years adverse) of service

25,000.00 150% of final salary x number of years of service

Special compulsory retirement grant

5

6

7

8

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1 month pay

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Hotel Intercontinental

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Other Benefits Provision Min

Max

Ave

Signing bonus Rice (in cash) Birth financial assistance (women) Industrial peace bonus Anniversary increase Eye care benefit Year-end gratuity Profit sharing

No. of Establishment Firms

1,000.00

21,500.00

6,650.00

8

Dusit Hotel

6,000.00

12,000.00

8,300.00

4

Manila Hotel

1,000.00

18,150.00

6,487.50

4

Traders Hotel

800

500,000.00 233,600.00 3

Manila Hotel

1,200.00

1,200.00

1,200.00

1

5,100.00

5,100.00 5,100.00 1 month pay -

1

Traders Hotel Mandarin Oriental Hotel Hotel Intercontinental Manila Hotel

-

1 1

** Amounts are in Philippine peso.

Table 7 indicates that provisions on group life and accident insurance (100%), emergency leave (67%) and signing bonus (53%) are common among the CBAs. However, it is also clear that the stipulation in individual hotelâ&#x20AC;&#x2122;s CBA is far more superior in comparison to the rest. In terms of rarity, profit sharing, year-end gratuity, eye care benefit, anniversary increase , special cash grant and special compulsory retirement grant are considered as one-of-akind vis-Ă -vis all economic provisions contained in the CBAs. Furthermore, other outstanding economic provisions such as industrial peace bonus, birth financial assistance to women, rice allowance in cash, non-adverse termination benefit, extended sick leave and other

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embodied in some CBAs indicate a positive move by both labour union and management towards the expansion of such benefits.

types of leave

Conclusions and Recommendations The recovering Philippine economy, unemployment, increasing labour flexibilization, and the abundant labour supply of unskilled labour force, as well as existing labour laws, tend to compel unions to lean towards an economic orientation on the bargaining table (Edralin 2003). This is further necessitated by the fact that there is an inverse relationship between the growth of Philippine tourism and hospitality vis-à-vis the number of ratified collective bargaining agreements in the hotel and restaurant sector. However, this study shows that labour unions in Philippine are still capable of negotiating improvements in the economic provisions stipulated in their past CBAs. In addition, some labour unions had been successful in ratifying new benefits that further enhance the CBA for the benefit of employees. Thus, it could be concluded that in spite of the challenges of the modern times and global economy, labour unions are still achieving their purpose of securing and protecting the economic interests of their members as gleaned from the provision embodied in their collective bargaining agreements.

Finally, the current situation of collective bargaining in the hospitality industry has opened avenues for research. A study of the actual conduct of collective bargaining could bring new bargaining strategies, concession and accommodation tactics, and patterns of relationships that will enrich the literature about Philippine industrial relations in general and unionism in hospitality industry, in particular.

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References Allen, V. (1954) Power in Trade Unions: A Study of Their Organization in Great Britain. London: Longman.

Binghay, V. (2007) Trade Unions Today. Antipolo City: VCB Research and Publications. p. 16 Bitonio, B.E. Jr. (2004) Workers Representation Amidst Labor Flexibility: Insight from the Philippine Experience. School of Labor and Industrial Relations (Researches / Publications), available at: http://solair.upd.edu.ph/images/bitonio_paper.pdf (accessed 20 January 2011) Bureau of Labor and Employment Statistics (BLES). (2004a) LABSTAT Updates: Extent of Unionism, Vol. 8 No. 13, available at: http://www.bles.dole.gov.ph/ARCHIVES/LABSTAT%20UPDA TES/issues/vol8_13.PDF (accessed 6 January 2014) Bureau of Labor and Employment Statistics (BLES). (2007a) LABSTAT Updates: Extent of Unionism and Collective Bargaining in Establishments: 2006, Vol. 11 No. 35, available at: http://www.bles.dole.gov.ph/ARCHIVES/LABSTAT%20UPDA TES/issues/Vol11_35.pdf (accessed 6 January 2014) Bureau of Labor and Employment Statistics (BLES). (2010a) LABSTAT Updates: Extent of Unionism and Collective Bargaining in Establishments: 2008 , Vol. 12 No. 2, available at:

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OUTSTANDING ECONOMIC PROVISIONS IN COLLECTIVE BARGAINING AGREEMENTS OF SELECTED HOTELS AND RESORTS IN THE PHILIPPINES

Bureau of Labor and Employment Statistics (BLES). (2011b) LABSTAT Updates: The 2010 Employment Situation, Vol. 15 No. 1, available at: http://www.bles.dole.gov.ph/ARCHIVES/LABSTA T%20UPDATES/labstat_view_subcategory.asp (accessed 6 January 2014) Bureau of Labor and Employment Statistics (BLES). (2010b) LABSTAT Updates: The 2009 Employment Situation, Vol. 14 No. 1, available at: http://www.bles.dole.gov.ph/ARCHIVES/LABSTA T%20UPDATES/labstat_view_subcategory.asp (accessed 6 January 2014) Bureau of Labor and Employment Statistics (BLES). (2009) LABSTAT Updates: The 2008 Employment Situation, Vol. 13 No. 2, available at: http://www.bles.dole.gov.ph/ARCHIVES/LABSTA T%20UPDATES/labstat_view_subcategory.asp (accessed 6 January 2014) Bureau of Labor and Employment Statistics (BLES). (2008) LABSTAT Updates: The 2007 Employment Situation, Vol. 12 No. 1, available at: http://www.bles.dole.gov.ph/ARCHIVES/LABSTA T%20UPDATES/labstat_view_subcategory.asp (accessed 6 January 2014) Bureau of Labor and Employment Statistics (BLES). (2007b) LABSTAT Updates: The 2006 Employment Situation, Vol. 11 No. 1, available at: http://www.bles.dole.gov.ph/ARCHIVES/LABSTA T%20UPDATES/labstat_view_subcategory.asp (accessed 6 January 2014) Bureau of Labor and Employment Statistics (BLES). (2006) LABSTAT Updates: The 2005 Employment Situation, Vol. 10 No. 1, available at: http://www.bles.dole.gov.ph/ARCHIVES/LABSTA T%20UPDATES/labstat_view_subcategory.asp (accessed 6 January 2014)

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OUTSTANDING ECONOMIC PROVISIONS IN COLLECTIVE BARGAINING AGREEMENTS OF SELECTED HOTELS AND RESORTS IN THE PHILIPPINES

Bureau of Labor and Employment Statistics (BLES). (2005) LABSTAT Updates: The 2004 Employment Situation, Vol. 9 No. 2, available at: http://www.bles.dole.gov.ph/ARCHIVES/LABSTA T%20UP DATES/labstat_view_subcategory.asp (accessed 6 January 2014) Bureau of Labor and Employment Statistics (BLES). (2004b) LABSTAT Updates: The 2003 Employment Situation, Vol. 8 No. 1, available at: http://www.bles.dole.gov.ph/ARCHIVES/LABSTA T%20UP DATES/labstat_view_subcategory.asp (accessed 6 January 2014) Bureau of Labor and Employment Statistics (BLES). (2003) LABSTAT Updates: The 2002 Employment Situation, Vol. 7 No. 1, available at: http://www.bles.dole.gov.ph/ARCHIVES/LABSTA T%20UP DATES/labstat_view_subcategory.asp (accessed 6 January 2014) Bureau of Labor and Employment Statistics (BLES). (2002) LABSTAT Updates: The 2001 Employment Situation, Vol. 6 No. 2, available at: http://www.bles.dole.gov.ph/ARCHIVES/LABSTA T%20UP DATES/labstat_view_subcategory.asp (accessed 6 January 2014) Bureau of Labor and Employment Statistics (BLES). (2001) LABSTAT Updates: The 2000 Employment Situation, Vol. 5 No. 1, available at: http://www.bles.dole.gov.ph/ARCHIVES/LABSTA T%20UP DATES/labstat_view_subcategory.asp (accessed 6 January 2014) Byars, L.L. and Rue, L.W. (2011) Human Resource Management.

(10th edition) Illinois: Irwin. p. 373.

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OUTSTANDING ECONOMIC PROVISIONS IN COLLECTIVE BARGAINING AGREEMENTS OF SELECTED HOTELS AND RESORTS IN THE PHILIPPINES

Foz, V. (ed.). (2004) The Labor Code of the Philippines and its Implementing Rules and Regulations. Quezon City: Philippine Law Gazette.

Department of Tourism (DOT). (2011) Arrivals by country of residence 2000-2011, available at: http://www.visitmyphilippi nes.com/index.php?title=VisitorStatistics&func=all&pid=39& tbl=1 (accessed 21 November 2013) Edralin, D. (2003) Collective Bargaining in the Philippines. Manila: National Bookstore.

Edralin, D. (1999) Collective Bargaining Process and Its Outcome.

DLSU-Manila, CBE Working Paper Series. 1999-02.

Hoxie, R. (1986) The economic program of trade unions. (Reprinted in Trade Unions, ed.). W.E.J. McMarthy. pp. 35-46 International Labor Organization. (1996) ILO Convention No. 87: Freedom of Association and Protection of the Right to Organize, available at: http://www.ilo.org/dyn/normlex/en/f?p =NORMLEXPUB:12100:0::NO:12100:P12100_INSTRUME NT_ID:312232:NO#A2 (accessed 21 November 2013) International Labor Organization (1996) ILO Convention No. 98: Right to Organize and Collective Bargaining, available at: http://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:121 00:0::NO:12100:P12100_INSTRUMENT_ID:312243:NO (accessed 21 November 2013) International Labor Organization (1996) ILO Convention No. 154: Collective Bargaining, available at: http://www.ilo.org/dyn/no rmlex/en/f?p=NORMLEXPUB:12100:0::NO:12100:P12100_I NSTRUMENT_ID:312299:NO (accessed 21 November 2013)

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OUTSTANDING ECONOMIC PROVISIONS IN COLLECTIVE BARGAINING AGREEMENTS OF SELECTED HOTELS AND RESORTS IN THE PHILIPPINES

Perlman, S. (1928) A Theory of the Labor Movement. New York: McMillan. cf. Ramos, (1990). Dualistic Unionism and Industrial Relations. Quezon City: New Day Publishers. p.1.

Ramos, E.T. (1990) Dualistic Unionism and Industrial Relations Philippines: New Day Publishers.

Rees, A. (1973) The economics of work and pay. Harper and Row. The chapter â&#x20AC;&#x153;Economic Functions and Objectivesâ&#x20AC;? is reprinted in Trade unions, ed. W.E.J. McCarthy. cf. Edralin, E. (2003).

Collective Bargaining in the Philippines. Manila: National Bookstore. p 122.

Salamon, M. (2000) Industrial Relations-Theory and Practice (4th ed.). Great Britain: Pearson Educational Limited. p. 323 The Official Gazette. (2010) The 1987 Constitution of the Republic of the Philippines, available at: http://www.gov.ph/constitutions/ the-1987-constitution-of-the-republic-of-the-philippines (accessed 21 November 2013) Tomboc, J. (2004) Outcomes of Collective Bargaining in the Philippine Manufacturing Industry. DLSU-Manila, CBE Working Paper Series 2004-02.

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THE EFFECTS OF SOCIETAL CULTURE ON THE DESIGN AND IMPLEMENTATION OF PROFESSIONAL DEVELOPMENT FOR THE HOSPITALITY INDUSTRY

THE EFFECTS OF SOCIETAL CULTURE ON THE DESIGN AND IMPLEMENTATION OF PROFESSIONAL DEVELOPMENT FOR THE HOSPITALITY INDUSTRY Mr. Robert McKenzie Vatel International Business School, Bangkok, Thailand r.mckenzie@vatel.co.th

© CirVath ASEAN – International Journal of Tourism – N° 6

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THE EFFECTS OF SOCIETAL CULTURE ON THE DESIGN AND IMPLEMENTATION OF PROFESSIONAL DEVELOPMENT FOR THE HOSPITALITY INDUSTRY

Mr. McKenzie is Deputy Director at Vatel International Business School, Thailand. Robert has a Masterâ&#x20AC;&#x2122;s Degree in Educational Leadership (Leicester University, UK) and a BA (Hons) Degree in Media and Communications (Wolverhampton University, UK). With a marketing industry background, Robert also teaches courses in International Marketing Management and Human Resources at Silpakorn University, Vatelâ&#x20AC;&#x2122;s academic partner in Thailand.

Abstract In a constantly evolving world, the hospitality industry faces a number of challenges relating to the quality of services driven by the demands of globalisation, increasing numbers of providers and changing social trends. To tackle such challenges, hospitality organisations focus on the quality of their employees in the hope that it will enhance a guests experience and satisfaction. In order to achieve this, a well planned professional development programme is considered an effective method of providing employees with the right knowledge and skills for modern day employability. However the effectiveness of professional development is one that needs to be questioned further and in particularly, how societal culture can influence the design and implementation of such programmes at an international organisation with multi cultural employees.

Keywords: Professional Development, Leadership, Training, Human

Resource Management, Hospitality, Societal Culture, Organizational Culture, Values,

Introduction Human Resources Management has long assumed that professional development plays an important role in the performance of an organisation by improving employee skill sets, updating techniques and knowledge. Training is an action that provides employees with

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the right skills for current daily job tasks, but professional development also understands the needs of the employee for future personal growth and career aspirations. The planning and implementation of successful professional development programs helps support human resources issues of motivation, retention, dealing with limited resources and employment succession.

Professional Development Planning Effective professional development should be carefully planned to provide the right balance between the needs of the organisation and the employee, as well as being conducted over a period of time, rather than a one off event. King (2004) believes that formal facilitated trainer led courses are provided through workshops, conferences, cross training, simulation, further study and certification, whereas informal programmes are usually developed independent of trainer led programs in communities of practice, self study, online forums and discussion boards where the sharing of information is common (Middlewood and Lumby 1998). Professional development can be delivered through a number of different methods, including coaching, mentoring, reflective supervised practice, shared communities, consultation and technical assistance.

Employees and organisations need to understand the reasons behind conducting professional development and also consider it as a lifelong learning approach that helps one’s own career aspirations. For example in the hospitality industry the Marriot Group (2014, online) stress the significance of professional development to their organisation ‘More than 3000 managers began their careers at Marriot in entrylevel positions, Marriot Associates average 78 hours of training and 34 hours of professional development each year, more than half of all Marriot employees are women and benefit from mentoring, coaching and networking programs, plus tuition aid averaging $5000 annually.’

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Employees’ attitudes towards professional development could also be determined by age, level of experience and gender. Johnston et al (2000 quoted in NCSET 2011, online) believe that certain barriers restrict effective professional development taking place such as conceptual barriers where employees see themselves as having different roles; pragmatic barriers including not having the time and resources to collaborate; attitudinal barriers through the fear of trying something new; and professional barriers usually as a result of poor preparation in working collaboratively as a team.

Middlewood (1997) discusses adult learners as needing to feel part of the process in selecting activities, able to see the results of their efforts through feedback, prefer learning in informal environments and resisting activities that are perceived as an attack on their own personal ability. Daft (2008:339) recommends that leaders need to possess astute cultural awareness of the different environments around them and develop “cultural intelligence” as to behave appropriately.

The notion of culture and its role in designing development programmes therefore plays a very crucial one, as different cultures have different societal values effecting the way how individuals will behave (Hofstede 1980, 1984).

Cultural Values and

Human Resources Management (HRM) After analyzing many different definitions of societal culture, Goodall (2002) concludes that there is really no clear notion available, but Walker and Dimmock (1999a) claim that Gert Hofstede’s (1980:25) definition of the ‘collective programming of the mind that distinguishes the members of one human group from another’, is the most widely referred to. Dimmock and Walker (2002:33) also add to Hofstede’s definition by stating that it is ‘those enduring sets of values, beliefs and practices’.

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Kerr et al (1960) discussed the emergence of a singular approach to management known as the ‘Convergence theory’, one that can be best applied to all cultures through the fact that societies share similar characteristics, as Shah (2003:4) describes leads to a common ‘global culture’. Therefore the argument supporting convergence theory states that there is no need to understand different techniques in management as a universally accepted, one way approach would suffice and perhaps one that can be identified with, through standardised global products and management practices.

However whilst some organisations may have moved towards cross cultural practices of this nature, it is still important to recognize that nations are at different levels of economic development, with different values and beliefs that cannot easily be changed (Hofstede, 2014, online). Cultural diversity therefore creates an opposing ‘Divergence’ theory (Child and Warner 2003) which is also prevalent throughout international organisations and perhaps best related to global products that demonstrate elements of localization to meet the needs of local customers or more commonly known as ‘Glocalization’ (Robertson, 2003).

Therefore the borrowing or transfer of management practices from one system to another should be better understood (Walker and Dimmock 1999; Shah 2003; Goh 2009). Smith (2002:9) mentions that the transfer of Western policymaking may add some form of ‘international legitimacy’, but it often does not account for various cultural nuances or sensitivity, leaving Dimmock (2003:6) to state that ‘concepts, theories, research findings, policies and practices conceived in the Anglo- American world may not apply, or may need adaptation in other societies’ Goodall (2002) identifies some of the problems leaders face in dealing with multi cultural environments, as he implies that there is some confusion and debate over exactly how cross cultural practices should

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THE EFFECTS OF SOCIETAL CULTURE ON THE DESIGN AND IMPLEMENTATION OF PROFESSIONAL DEVELOPMENT FOR THE HOSPITALITY INDUSTRY

be dealt with. HRM practices in particular are considered bound by culture and pose various problems for organisations with ‘multiple affiliates’ (Adler & Bartholomew 1992:17). Child (2002:49) adds to the effects of culture on HRM by saying that ‘National differences in cultural values are most likely to influence matters such as personal style, desired rewards, how people relate with others and the degree of contextual structuring they seek’ To understand culture and its effects on professional development, it is important to focus on different cultural values and how they might affect the way development programs are designed for the benefit of the employee and organisation as a whole. Hofstede (2003) points to the fact that as values in societal culture are often difficult or slow to change, there is always the potential for multi cultural organisations to experience cultural differences and clashes. Hofstede’s (1980) study of IBM offices across 40 countries demonstrates how employees working for the same organisation can still hold distinct attitudes to work, which Hofstede places within an extremely useful framework for studying societal values.

Dimensions of National Culture Hofstede’s (1980) research of IBM employees provided the first widely acknowledged set of dimensions on cultural values and defined them as being ‘a broad tendency to prefer certain states of affairs over others’ Hofstede (1984:18). The results of the research produced the following dimensional framework for national culture: Individualism and Collectivism : Individuals are expected to look after themselves or immediate family, with their own interests and values taking priority. Individual rights and individuality are therefore very important. With Collectivism the focus is on the ‘We’ member group, with strong ties and bonding that can last a lifetime in return for loyalty.

THE EFFECTS OF SOCIETAL CULTURE ON THE DESIGN AND IMPLEMENTATION OF PROFESSIONAL DEVELOPMENT FOR THE HOSPITALITY INDUSTRY

Power Distance: displays different levels of power play within institutions and amongst individuals. With Low Power Distance values there is a greater degree of equality and opportunity. In High Power Distance, people accept a hierarchical society that creates inequality through power and wealth.

Uncertainty Avoidance: High Uncertainty Avoidance means a stronger reliance on behaviours that guarantee conformity and stability, thereby creating a more rule oriented society in order to reduce anxiety and uncertainty. Low Uncertainty Avoidance societies are more unpredictable with unstructured behaviour, tolerate risk and different opinions.

Masculinity and Femininity: Masculinity in society is reflected through assertiveness, achievement, heroism and material success.

Femininity centres on the value of traits such as caring, relationships, quality of life, acceptance from the group and standing out from the crowd is not desirable.

Hofstede added a fifth dimension called Long Term Orientation in 1991 which was based on research by Michael Bond (1988), and the teachings of Confucius to compare Asian and Western cultures. Long term pragmatic values focus on future rewards through persistence, thrift and relationships ordered by status. Short term values deal with the present and past, personal steadiness, tradition, quick results and fulfilling social obligations.

Table 1: Example of Hofstede’s societal culture country scores (2010) Country

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When applied to Professional Development, Thailand and China for example rank highly in ‘Collectivism’, so in relation to training Hofstede (1986) indicates a preference for smaller harmonious, non confrontational groups (usually from the same ethnical or member group) and certification is a sign of status which is more important than the actual competency itself. In the USA, Individualism demonstrates the sharing of information between managers and employees, rewards or promotions are based on the merit of what a person can actually do and low power distance implies that Managers are more accessible with less structured hierarchy.

Thailand ranks highly for ‘Femininity’ where Hofstede (1986) applies this to learning environments demonstrating less competitiveness, open praise of others is limited, average performance is the norm, and social adaptation and friendliness to others is encouraged so that people in the same group do not ‘lose face’. This contradicts the ‘Masculine’ dimension where praise and performance is recognised, brilliance admired and career advancement is openly sought after in countries like the U.S.A. Hofstede (1986) wrote that ‘High Power Distance’ includes a teaching methodology that is trainer centred, criticism of trainers is not acceptable, older trainers are respected more than younger ones and knowledge is transferred and relied upon from a relationship with a guru or ‘Master’ teacher. On the other hand, nations with ‘Low Power Distance’ can be interpreted as applying student centred learning, a trainer’s age is not an issue, and wisdom is gained from any person that is considered qualified enough regardless of age or seniority.

© CirVath ASEAN– International Journal of Tourism – N° 6

THE EFFECTS OF SOCIETAL CULTURE ON THE DESIGN AND IMPLEMENTATION OF PROFESSIONAL DEVELOPMENT FOR THE HOSPITALITY INDUSTRY

‘High Uncertainty Avoidance’ also indicates more structured stable learning environments with detailed information, any form of nervousness may mean higher levels of emotions and expression.

‘Low Uncertainty Avoidance’ values are more comfortable in ambiguous situations, open to discussion, a willingness to try something new and welcome innovation. (Hofstede online 2014) By taking societal culture into consideration it becomes clear that it could play a critical role in determining what kinds of professional development activities would be suitable for employees. Asian cultures for example, often display certain values that are different from Western countries and therefore borrowed methods of professional development may not produce the required response. In fact it may even be deemed counterproductive or a waste of time with certain employees who like to learn or train in different ways, which will not only be detrimental to the employee, but also to the overall organisation. Child (2002:34) therefore states that by understanding societal culture first of all, it will help an organisation ‘to find a commonly acceptable way of proceeding, communicating and (eventually) sharing identity’ which helps lead to the creation of an organisational culture.

Organisational Culture Once cultural values of employees are better understood, it is then possible to look towards Walker and Rhiordan’s (2010:51) theory of ‘collective capacity’, by allowing a leader to develop a ‘shared set of values and understandings that guide action’. In essence it forms a collective identity at work, a sense of belonging, even if different societal values exist amongst its members. Arogyaswamy and Byles (1987) discuss how specific values and ways of doing things amongst employees are known as ‘Cultural Strength’. An organisation therefore will have a strong and cohesive one if agreement exists, however if the opposite applies, the culture will be weak.

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THE EFFECTS OF SOCIETAL CULTURE ON THE DESIGN AND IMPLEMENTATION OF PROFESSIONAL DEVELOPMENT FOR THE HOSPITALITY INDUSTRY

In order to deal with different cultural values, Walker and Dimmock (2002) recommend that a country or regional specific approach should be applied when addressing Human Resources policies. International hospitality organisations also face the complex issues of not only adapting at a regional or country level, but also to handle multi cultural employees at individual hotel properties. For example an international hotel group initiative such as running a Talent Development Program, needs to be tailored for each individual as well as adapting to each country’s cultural values or expectations. The overall aims of the Talent Development Program will be the same throughout the group, but the planning and implementation may be changed in order to achieve the same successful goals.

Conclusion Professional development will not only help with issues of Human Resource Management in developing, motivating and retaining employees, but from an organizational perspective it can also help create the desired behavior of employees and eventually contribute to a shared organisational culture. The practice of professional development is an area of leadership that requires further attention in order to understand how effective programs are designed and implemented particularly within the cultural settings they are delivered. By conducting further empirical research on the effects of culture on professional development programs, hospitality organisations can improve the productivity of the overall business as well as to meet the professional needs of an individual employee.

© CirVath ASEAN – International Journal of Tourism – N° 6

THE EFFECTS OF SOCIETAL CULTURE ON THE DESIGN AND IMPLEMENTATION OF PROFESSIONAL DEVELOPMENT FOR THE HOSPITALITY INDUSTRY

References Adler, N. J. and Bartholomew, S. (1992) Managing Globally Competent People, Academy of Management Executive, 6 (3) Arogyaswamy, B. and Byles, C. (1987) Organizational Culture: Internal and External Fits, Journal of Management 13, Sage Publishing, pp 647 – 659 Bond, M. H. (1988). Finding universal dimensions of individual variation in multicultural studies of values: The Rokeach and Chinese value surveys. Journal of Personality and Social Psychology, 55, 1009-1015 Child, J. (2002) Theorizing about organization cross- nationally: part 1 – an introduction in Warner, M. and Joynt, P. (Eds) Managing across cultures: issues and perspectives, London Thomson Learning, 26- 39 Child, J. and Warner, M. (2003) Cultural Management in China, Judge Institute of Management, University of Cambridge, http://www. jbs.cam.ac.uk/research/working_papers/2003/wp0303.pdf, accessed online May 2011 Daft, R. (2008) The Leadership Experience, 4th Edition, Thomson Cengage Learning Dimmock, C. (2003) Leadership in learning centred schools, in Brundrett, M. et al, (2003) Leadership in Education, London: SAGE Publications, pp3-22 Goh, J.W.P. (2009) Parallel leadership in an “unparallel” world' — cultural constraints on the transferability of Western educational leadership theories across cultures, International Journal of Leadership in Education, 12: 4, 319 — 345

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Goodall, K. (2002) Managing to learn: from cross cultural theory to management education practice, in Warner, M. and Joynt, P. (Eds) Managing across cultures, Thomson, 256- 268 Hofstede, G, H. (1980) Cultureâ&#x20AC;&#x2122;s consequences, international differences in work related values, Sage publications Hofstede, G, H. (1984) Cultureâ&#x20AC;&#x2122;s consequences, international differences in work related values: Abridged edition, Sage publications Hofstede, G, H. (1986) Cultural differences in teaching and learning, International Journal of Intercultural Relations 10 (3) 301-320 Hofstede, G.H. (2003) Cultures consequences: comparing values, behaviors, institutions, and organizations across nation, Second edition, SAGE Hofstede, G., Hofstede, G.J & Minkov, M. (2010), Cultures and Organizations: Software of the Mind. 3rd Edition, McGrawHill USA Hofstede, G. (2014) http://www.geerthofstede.com/dimensions-ofnational-cultures, accessed online February 2014 Johnston, S.S., Tulbert, B.L., Sebastian, J.P., Devries, K, & Gompert, A. (2000) Vocabulary development: A collaborative effort for teaching content vocabulary, Intervention in School and Clinic, 35(5), 311-315 in NCSET, http://www.ncset.org/topics/ profdevelopment/faqs.asp?topic=15, accessed online Jan 2014 Kerr, C; Dunlop, J; Harbinson, F. and Myers, C. (1960) Industrialism and Industrial Man: The problem of labor and management in economic growth, Cambridge, Harvard University press

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King, H. (2004) Continuing Professional Development in Higher Education: what do academics do? Planet no 13, University of Plymouth Marriot (2014) http://www.marriott.com/corporate-social-responsibility/ corporate-training-programs.mi#/section/workplace-training, accessed online January 2014 Middlewood, D. (1997) Managing staff development, in Bush, T. and Middlewood, D. Managing People in Education, London, Paul Chapman Publishing, 186-202 Middlewood, D. and Lumby, J. (1998) Human Resource Management in Schools and Colleges, London, Paul Chapman Publishing, Robertson, R. (2003), The Conceptual promise of Glocalization: Commonality and Diversity, http://artefact.mi2.hr/_a04/lang_ en/theory_robertson_en.htm Shah, S. (ed.) (2003) Human Resource Management: International Comparative Perspectives, School of Education, University of Leicester, 1-20 Walker, A. and Dimmock, C. (1999) A cross cultural approach to the study of educational leadership: an emerging framework, Journal of School Leadership; 9(4), 321-348, in Shah, S. Human Resource Management: International Comparative Perspectives, School of Education, University of Leicester Walker, A. and Dimmock, C. (Eds) (2002) School Leadership and Administration: Adopting a Cultural Perspective, London: Routledge Falmer

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Walker, A. and Riordan, G. (2010) Leading collective capacity in culturally diverse schools, School Leadership & Management, 30: 1, 51 — 63

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MEDIA CONTENT ANALYSIS ON ECOTOURISM OF LEADING PHILIPPINE BROADSHEETS (2008-2012)

MEDIA CONTENT ANALYSIS ON ECOTOURISM OF LEADING PHILIPPINE BROADSHEETS (2008-2012) Mr. Benigno Glenn R. Ricaforte School of Hotel, Restaurant and Institution Management De La Salle-College of Saint Benilde Manila, Philippines glenn.ricaforte@benilde.edu.ph

© CirVath ASEAN – International Journal of Tourism – N° 6

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MEDIA CONTENT ANALYSIS ON ECOTOURISM OF LEADING PHILIPPINE BROADSHEETS (2008-2012)

Mr. Ricaforte is an Assistant Professor at De La Salle-College of Saint Benilde handling food safety and management courses alongside with his active participation in research.

Abstract The study involved a deeper understanding on how the Philippine local print media communicate the key elements of ecotourism strategy. The research reviewed and analyzed the leading Philippine broadsheets with regard to their coverage of ecotourism and ecotourism destinations from 2008 to 2012. The methodology used was Web-based media content analysis. Using the five-point framework on ecotourism strategy, the study found that the broadsheets contributed and communicated more to industry involvement and marketing and promotion and very little to environmental protection, product development and infrastructure development. Among the ecotourism sites, Cebu, Palawan and Bohol, Philippines were given the most mileage by the broadsheets reviewed.

The results were consistent with the current strategic directions of the ecotourism industry in the Philippines, the Civil Society Assessment of the 2004-2010 Medium-Term Philippine Development Plan for the Tourism Sector and the Final Report for the Sustainable Management Plan for Central Philippines.

Keywords: Media Content Analysis, Ecotourism, Tourism Destination, Broadsheets, Philippines

Introduction The tourism economy contributes US$ 1,075 billion as receipts to global Gross Domestic Product which represents 9.0% of the total in 2012 according to United Nations World Tourism Organization (UNWTO, 2013). Further, international tourist arrivals worldwide will increase by 3.3% a year from 2010 to 2030 to reach 1.8 billion by

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2030 according to UNWTO long term forecast Tourism Towards 2030.

Likewise, the Department of Tourism (DOT) reported that the Philippines’ performance in tourism for 2013 reached 4,681,307 surpassing the previous year’s record of 4,272,811 by 9.56%, which; in monetary terms, total revenues gained from inbound visitors for the year was estimated at US$4.40 billion, equivalent to Php 186.15 billion, up by 15.1% (DOT, 2014).

The blueprints advocated by World Travel and Tourism Council (WTTC) is for the government to recognize travel and tourism as a top priority which is business balancing economics with people, culture and environment leading to a shared pursuit of long-term growth and prosperity which is aptly promoted as New Tourism (WTTC, 2003).

Similarly the Philippine government formulated an integrated sustainable tourism management plan for the Central Philippines, identifying viable critical environmental, infrastructure and community-based projects to link and integrate the tourism development of the area (DOT, 2009).

Realizing the need for a conceptual basis for ecotourism development in the Philippines, the DOT and the Department of Environment and Natural Resources (DENR) structured a national policy and strategic guidelines on ecotourism that led to the country’s National Ecotourism Strategy (NES). As defined, ecotourism is a form of sustainable tourism within a natural and cultural heritage area where community participation, protection and management of natural resources, culture and indigenous knowledge and practices, environmental education and ethics, as well as economic benefits are fostered and pursued for the enrichment of host communities and satisfaction of visitors (NES, 2001).

Media play a vital role in tourism development. Zlatar (2003) mentioned that the media can become mediator between culture and society, meaning that they mediate in a process of conveying products from the producers to the consumers. Media content analysis is a specialised sub-

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set of content analysis (Macnamara, 2006). In perspective, Neuendorf (2002) defined content analysis as summarising quantitative analysis of messages that relies on the scientific and is not limited as to the types of variables that may be measured or the context in which the messages are created or presented.

In travel and tourism, the study conducted by Choi et al. in 2007 attempted to identify the image representations of Macau on the internet by analyzing the contents of different web information sources. Results showed that the image of Macau projected online varies by the different online information sources. In a related study

by Zhou and DeSantis (2005) through content analysis city tourism website showed that usability challenges exist in various aspects in both content and functions.

The paper will contribute to a deeper understanding on how the local media communicate the major themes of ecotourism strategy to general public discourse. The paper will also provide a situationer on the current strategic directions of the Philippine government on ecotourism. The objective of the research is to review and analyze, based on a conceptual framework, the Philippine leading broadsheets on the subject of ecotourism and corresponding ecotourism destinations from 2008 to 2012.

ethodology

M Data Collection

Utilizing the web technology as search engine of two Philippine leading broadsheets namely, Philippine Star (www.philstar.com) and Philippine Daily Inquirer (www.inquirer.net), an archival search was done from 2008 to 2012. “Ecotourism” as a key word was used in the search engine to reveal the newspaper articles containing the word ‘ecotourism”. Each article was downloaded and included in the data base.

MEDIA CONTENT ANALYSIS ON ECOTOURISM OF LEADING PHILIPPINE BROADSHEETS (2008-2012)

Data Analysis and Presentation Each article was read and the content organized, categorized, analyzed and tabulated by key elements as proposed by McCotter, 1995 (in Page and Dowling, 2002) and by location. For the purpose of categorization and analysis, articles were allowed to have multiple themes. The key elements of an ecotourism strategy for categorization and analysis were environmental protection, product development, infrastructure development, marketing and promotion and industry involvement. Articles that contain the key word ‘ecotourism’ but did not pertain to Philippine area were excluded. As some articles mentioned more than one location, multiple location frequency was also allowed. The number of occurrences of key element and top-3 locations were calculated and tabulated.

Results and Discussion On key element of ecotourism strategy through media content analysis The Nielsen Consumer and Media View survey covering the fourth quarter of 2012 found that the Philippine Daily Inquirer is the newspaper of choice of 46.54% and Philippine Star posted 30.34% (Inquirer Research, 2013).

A total of three hundred and five articles containing the key word ‘ecotourism’ were downloaded from both broadsheets. The number of occurrences of the key word ‘ecotourism’ appeared in Philippine Star is forty-four, forty-three, forty-six, thirty-four and thirty-four for 2008, 2009, 2010, 2011 and 2012, respectively. For Philippine Daily Inquirer, the totals were nineteen, fourteen, fourteen, twenty-nine and twenty-eight for 2008, 2009, 2010, 2011 and 2012, respectively.

Upon analysis, the key element as categorized is presented in Table 1.

Based on ranking of the key element, industry involvement topped the results followed subsequently by marketing and promotion,

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MEDIA CONTENT ANALYSIS ON ECOTOURISM OF LEADING PHILIPPINE BROADSHEETS (2008-2012)

environmental protection, product development and infrastructure development both for Philippine Star and Philippine Daily Inquirer.

Table 1: Total frequency of the key elements of articles on ecotourism downloaded from Philippine Daily Inquirer (PDI) and Philippine Star (PS), 2008-2012 2008 2009 2010 2011 2012 Key Element P P P P P P P P P P D S D S D S D S D S Total % I I I I I Environmenta l Protection

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In 2010, Cusick conducted a similar study in Hawaii which also revealed the dominance of industry involvement. The results could reflect a general public discourse on development concern of the industry, its promotion and environmental protection. Ideally, ecotourism strategy should foster environmental protection and tourism development through a sustainable resource and planning framework (Dowling 1993). et.al,

Media may mirror the society. The results of the media content analysis may reflect the current situation of ecotourism strategies in the Philippines. As stated in Medium Term Philippine Development

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Plan (MTPDP) 2004 – 2010, the tourism industry is among the sectors that has the potential to boost the Philippine economy. It can be a powerful economic growth engine for the country, if developed in a sustainable manner. It deserves to be a top priority for national development because of the following reasons: it is a powerful and efficient industry; its impacts on social development are broad and deep; it creates strong peripheral benefits; the Philippines can compete and win; and it helps maintain cultural integrity, ecological processes, and biological diversity and life support systems. Market focus and destination focus are the key strategies for tourism development in the Philippines.

The industry involvement and market focus are reflected in Figure 1 on the results of the media content analysis of Philippine Star and Philippine Daily Inquirer. Environmental protection, product development and infrastructure development are not given due priorities. Imbalance among key elements of an ecotourism industry is very evident. Imbalance, if left unchecked will result in the destruction of natural assets which is the main product of any ecotourism destination.

The civil society shared the same sentiment. Alampay (2010), on his write up of Civil Society Assessment of the 2004-2010 Medium Term Philippine Development Plan on the Tourism Sector, reported that the impacts of a purely growth-oriented tourism program will be limited as far as contributing to the deeper development goals of the nation.

In addition, there is also a need to highlight the potential dangers that large-scale tourism developments could bring in terms of the disruption and dislocation of rural/coastal communities, potential increases in prostitution, drug use and other illegal activities, as well as significant long-term damage to sensitive natural ecosystems.

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Figure 1: Bar Chart of Total Frequency as a Percentage of Key Articles Elements on Ecotourism; Downloaded from Philippine Star and Philippine Daily Inquirer, 2008-2012

The passage of the Tourism Act of 2009 gives the DOT the policy instrument to put tourism on a new level. The law empowers the department to reorganize the national machinery for the development of tourism. It provides the framework for the collaboration and partnership of the public and private sectors for sustainable tourism development. And just as important, it mobilizes the resources for infrastructure development and tourism promotions. These primarily emphasized the active role of industry involvement and promotions as major themes. It is noteworthy that infrastructure development would be a priority. However, the major themes are not even mentioned.

To fully understand the importance of environmental protection in the context of ecotourism industry, it has to be viewed in a marketing perspective. Environmental protection and product development together with their components are considered to be the main products of an ecotourism site. Kotler (2010) define ‘ product’ as ‘ anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need’ . It includes physical objects, services, persons, places organizations and ideas. If the product concept of an ecotourism site passes the business test, it et

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MEDIA CONTENT ANALYSIS ON ECOTOURISM OF LEADING PHILIPPINE BROADSHEETS (2008-2012)

moves into product development stage for an ecotourism site to be viable and sustainable. According to Denman (2003), ecotourism product provides the visitor with an authentic understanding of the areaâ&#x20AC;&#x2122;s natural and cultural heritage, and involves and benefits local people. He further reiterated that the most essential component of an ecotourism product is the inherent quality of the landscape and wildlife which are the main visitorsâ&#x20AC;&#x2122; motivation, but closely followed by the opportunity to meet local people and experience cultural traditions and lifestyles.

According to Fernandez (2010), DOTâ&#x20AC;&#x2122;s allocated one third of their 2011 budget to tourism promotion amounting to Php 476M to help boost foreign visitor numbers amid sagging figures following the August 23, 2010 hostage fiasco that killed eight Hong Kong tourists.

On the contrary, National Parks Development Committee had been allotted only to Php 115M --- more than 300% less as compared to promotion. Similarly, since 2002 up to 2010, allocations to the environment and natural resources sector remained at 1 percent or less of the total General Appropriations Act (GAA) (Ronquillo et al., 2010).

Furthermore, funding allocation for the implementation of the Mining Act has been consistent since 2002. A total of almost Php 4.3 billion has been allocated to Mining and Geosciences Bureau (MGB) where operations for the implementation of the Mining Act are lodged. This takes up an average of 6.7 percent of DENRâ&#x20AC;&#x2122;s total annual budget. In contrast, funding allocations for protected areas, biodiversity conservation, reforestation and implementation of environmental laws such as the Clean Air Act, Solid Waste Management Act among others, are either erratic, low or completely without allocations and continue to be a low priority since 2002.

A total of only Php 2.3 billion has been allocated for protected areas and wildlife management under Protected Areas and Wildlife Bureau (PAWB) from 2002-2010. This takes up only 3.4 percent of DENRâ&#x20AC;&#x2122;s

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total annual budget. To cap it all, allocations for much needed environmental initiatives such as protected areas, biodiversity conservation and reforestation that are included in the GAA are not released or impounded by the Office of the President. For 2009 alone, impounded allocations totalled Php 1.1 billion. The much talked about Php 1 billion budget for reforestation dubbed by the Arroyo government as the biggest single year allocation from the regular budget in the history of forestry was not released.

On location through media content analysis

In terms of location as appeared and tallied from the three hundred five articles that were downloaded, analyzed and categorized, the province of Cebu topped the list as presented in Table 2.

Table 2: Top Three Ecotourism Destinations Mentioned in the Article; Downloaded from Philippine Star and Philippine Daily Inquirer from 2008 to 2012 Ecotourism destination

Number of times (total = 267)

Percentage share

Cebu

60

22.5

Palawan

48

18.0

Bohol

22

8.2

Cebu is followed by Palawan and Bohol. The commendable number of foreign tourist arrival in Cebu, Palawan and Bohol is linked to the strategy developed by Arroyoâ&#x20AC;&#x2122;s administration called Central Philippines Super Region. The area includes the provinces of Palawan, Romblon and Camiguin, the island of Siargao, the city of Dapitan and Regions V, VI, VII and VII.

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MEDIA CONTENT ANALYSIS ON ECOTOURISM OF LEADING PHILIPPINE BROADSHEETS (2008-2012)

Cebu is the Central Philippines premier destination for both foreign and domestic tourists. Because Mactan International Airport, Cebu is a major international gateway, the island has good international and domestic access. Cebu possesses a range of touristic attractions â&#x20AC;&#x201C; high quality beaches, dive sites, cultural heritage, etc., along with a wide range of accommodation facilities. Although the transport infrastructure is reasonable, there are services infrastructure gaps with regards to utilities, particularly access to potable water (SMPCP, 2007).

While fragmented nature of tourism institutional arrangement exists in the central government, the local government unit (LGU) of Cebu is cohesive due to the unwavering leadership. This leadership is transcended to a sound ecotourism promotion. The efforts of Cebuâ&#x20AC;&#x2122;s LGU were recognized as exemplified when former Gov. Gwendolyn Garcia received the Rotary Club of Manila Tourism Personality Awards for her contribution to the promotion of tourism through the successful Suroy-Suroy Sugbo that has been used as benchmark for other provinces (Lao, 2009). These government efforts are matched by the civil society. As exemplified, Cebu Environmental Network of NGO's is an alliance of environmental NGOs based in Cebu, convened by Coastal Conservation and Education Foundation, Inc. (CCEF) and Global Legal Action on Climate Change (GLACC)-Cebu, in collaboration with Federation of Visayas Radio Clubs (FVRC) and local partners. The EarthDance Cebu 2010! brought together people and organizations together from all over the Visayas and Mindanao to celebrate the Earth, and crystallized the movement toward Environmentally Sustainable Development in the region (Go, 2010).

Consequently, these efforts by both government and civil society were captured by the media and helped in the promotion of ecotourism in Cebu.

Ronquillo et al., (2010) emphasized that at the impacts and benefits of tourism tended to converge in priority destinations, rather than have natural and cultural resources (e.g. nature parks, protected areas, and

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MEDIA CONTENT ANALYSIS ON ECOTOURISM OF LEADING PHILIPPINE BROADSHEETS (2008-2012)

cultural communities) that could become potential assets for tourism.

In fact, a number of key sites identified in the NES are located in the poorer provinces. The emergence, in recent years, of destinations such as Siargao (Surigao del Norte), and Caramoan (Camarines Sur) shows that tourism can be developed even beyond the priority areas identified by DOT. Perhaps more significantly, there have been notable case studies of tourism being used as a vehicle for the empowerment of traditionally disadvantaged sectors of Philippine society, i.e. women and indigenous cultural communities.

Summary and Conclusions Using the framework on ecotourism strategy having a 5-point major theme namely environmental protection, product development, infrastructure development, marketing and promotion and industry involvement, the Philippine Star and the Philippine Daily Inquirer had captured the general discourse of ecotourism in the Philippines via web-based media content analysis. In terms of rank, industry involvement, marketing and promotion topped the list while environmental protection, product development and infrastructure development are lagging behind in terms of priority. The disparity among key elements of an ecotourism industry is very evident which were mirrored in Civil Society Assessment of the 2004-2010 Medium Term Philippine Development Plan for the Tourism Sector. In terms of priority areas, Cebu, Palawan and Bohol were given due importance by the print media which are reflected in the Sustainable Management Plan for Central Philippines.

The DOTâ&#x20AC;&#x2122;s and DENRâ&#x20AC;&#x2122;s relative lack of empha sis on protection of natural assets, conservation of resources and cultural assets, resource management and identification may slow down the development of ecotourism in the Philippines. Ecotourism sites outside the main tourism hubs will still require significant support and technical assistance for capacity building to ensure their sustainability.

Ecotourism should not end being treated by both DOT and the other

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resourced-oriented government agencies as niche activities that are peripheral to the main activities of the departments which as a result, the tourism-related expertise in these partner agencies, which could also greatly benefit the community-based initiatives, has been left largely undeveloped (SMPCP, 2007).

The media may help drive the current prospects and development of ecotourism in the Philippines. It may condition the mind of the consuming public towards a sustainable ecotourism industry. It is encouraged that resourced-based agencies such as DOT and DENR collaborate with media in terms capacity building, environmental education, marketing and promotion, and draw a concerted effort to come up with viable marketing plan to include proper market segmentation, target markets, market positioning vis-a-vis with a systematic marketing evaluation and control.

From single-minded foci on expanding the Philippine ecotourism industry, a diversified program is recommended to encourage ecotourism as a complementary development strategy for promotion of sustainable resource management, poverty alleviation and empowerment of disadvantaged stakeholders. From the grassroots level, support for LGU and community-based destination development initiative should be advanced.

As the areas of environmental protection and product development are not given required attention, for continuous improvement of ecotourism industry, the research and development should emphasize the integrated conservation and protection of biodiversity-rich protected areas as ecotourism sites using biodiversity corridors approach, establishment of models of ecotourism projects, and holistic ecotourism environmental protection, product development, marketing, promotion and evaluation. The research results should then be properly conveyed to the stakeholders. Media may play a pivotal role in ecotourism industry in the area of environmental awareness, promotion and education. As an offshoot, research with regard to

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MEDIA CONTENT ANALYSIS ON ECOTOURISM OF LEADING PHILIPPINE BROADSHEETS (2008-2012)

traveller's perception in the Philippines on ecotourism is highly recommended.

References Alampay, R.. (2010). Available: http://www.pdfchaser.com/pdf/Mediu m-Term-Philippine-Development-Plan-2004-2010.html. Last accessed 19th January 2011.

Choi, S. J., Lehto, X.Y., and Morrison, A. M. . (2007). Destination image representation on the web: Content analysis of Macao travel related websites [Abstract].Tourism Management, 28(1), 118-129. Available: http://www.cabdirect.org/abstrac ts/20063230991.html. Last accessed 20th January 2011.

Cusick, J., Mcclure, B. and Cox, L. (2010). Representations of ecotourism in the Hawaiian Islands: A content analysis of local media., Journal of Ecotourism. 9 (1), 21-35.

Denman, R. (2003). Product development, marketing and promotion of ecotourism. Available: http://www.unep.fr. Last accessed 19th January 2011.

Department of Tourism. (2009). Tourism Strategy. Available: http://www.tourism.gov.ph/SitePages/tourismpolicy.aspx.

Last accessed 19th January 2011.

Department of Tourism. (2014). The Philippines Hosted 4.7 Million International Visitors in 2013. Available: http://www.tourism .gov.ph/Pages/IndustryPerformance.aspx. Last accessed 12 February 2014.

Dowling, R. (1993). An environmentally based planning model for regional tourism development. Journal of Sustainable Tourism.

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1 (1), 17-37. ennell, D.A. (2001). A content analysis of ecotourism definitions. Current Issues in Tourism, 4 (5), 403421.

Fernandez, L . (2010). 1/3 of tourism budget to go to promotions.

Available: http://globalnation.inquirer.net/news/breaking news/view/20100915-292400/13-of-tourism-budget-to-goto-promotions. Last accessed 20th January 2014.

Go, V. (2010). Earthdance Cebu 2010 [Web log comment]. Available: http://www.vernongo.com/2010/08/earthdance-cebu2010.html. Last accessed 20th December 2013.

Inquirer Research. (2013). PDI keeps big lead in newspaper readership. Available: http://newsinfo.inquirer.net/364415/ pdi-keeps-big-lead-in-newspaper-readership. Last accessed 25th January 2014.

Kotler, P., Bowen J. and Makens, J. (2010). Marketing for Hospitality and Tourism. New Jersey: Pearson. p.67-69.

Lao, G.. (2009). Gwen to receive award for tourism promotion.

Available: http://www.philstar.com/Article.aspx?articleId=4 64754&publicationSubCategoryId=107. Last accessed 22nd January 2014.

Macnamara, J. (2006). Media Content Analysis Uses, Benefits & Best Practice Methodology. Available: http://www.archipelago press.com/images/ResearchPapers/Media%20Content%20A nalysis%20Paper.pdf. Last accessed 13th February 2014.

McCotter, M.. (2002). Planning and Developing Ecotourism. In: Page, S. and Dowling, R. Ecotourism. China: Pearson Education Limited. p. 195-226.

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Medium Term Philippine Development Plan (MTPDP) 2004 – 2010.

(2004).Chapter 5 Tourism. Available: http://www.neda.gov. ph/ads/mtpdp/MTPDP2004-2010/PDF/MTPDP20042010.html. Last accessed 23rd January 2014.

National Ecotourism Strategy (NES). (2001). National Ecotourism Strategy Preliminary Draft. Available: http://www.visitmy philippines.com/index.php?title=e-Library&func=all&pid=3 22&tbl=1. Last accessed 13th February 2014.

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Ronquillo, J, Morala R. and Gabriel, R. (2010). Winning the numbers, losing the war the other MDG Report 2010. Available: from http://ph.one.un.org/pdf-files/The_Other_MDG_Report_201 0.pdf. Last accessed 13th February 2014.

Sustainable Management Plan for Central Philippines (SMPCP. (2007). Available: http://www.Sustainable%20Tourism%20 Management%20Plan%20for%20Central%20Philippines%2 02. Last accessed 20th January 2011.

United Nations World Tourism Organization. (2013). UNWTO Tourism Highlights 2013. Available: www.unwto.org/pub.

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Zlatar, A. (2003). The role of the media as an instrument of cultural policy, an inter-level facilitator and image promoter: mapping out key issues to be addressed in South East

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Europe. Available:http://www.policiesforculture.org/dld/PfC _AZlatar_SEECulture&Media.pdf. Last accessed 24th January 2014.

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DEVELOPING EXCELLENT CUSTOMER SERVICE IN THE ASEAN REGION

DEVELOPING EXCELLENT CUSTOMER SERVICE IN THE ASEAN REGION Dr. Sanjay Bhardwaj Vatel International Business School Thailand s.bhardwaj@vatel.co.th

© CirVath ASEAN – International Journal of Tourism – N° 6

78

DEVELOPING EXCELLENT CUSTOMER SERVICE IN THE ASEAN REGION

Mr. Bhardwaj (Phd) is a Lecturer and Professional Training Coordinator at Vatel Thailand. Mr. Bhardwaj has a Doctorate Degree in Education from Arizona University and has been involved in the training of hospitality professionals since 1996.

Abstract The Hospitality industry is currently experiencing huge growth throughout South East Asia and offers employment opportunities in a rewarding and dynamic environment. Most customer research conducted on hospitality organizations have found an overwhelming demand for products of superior quality and therefore improving the service provided has become increasingly evident to professionals in the hospitality industry. Amongst all customer demands, service quality has been recognized as a critical factor to the success of any business involved in the hospitality industry.

This article discusses a framework for creating internal strength and maintaining a competitive advantage through a simple strategy of implementing professional customer service. The efficient strategies involve areas such as understanding the customer orientation, building a relationship with the customer and developing team spirit and organizational culture for a successful business. This will help the service industry to stay profitable despite rapidly changing market conditions within the ASEAN economic community.

Keywords: Customer Service, empowerment, customer satisfaction, customer feedback, organizational culture

Introduction In 2015, Thailand will be part of the Association of South East Asian Nations (ASEAN) Economic Community and it has been commented that all types of businesses involved in the service industry will need

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DEVELOPING EXCELLENT CUSTOMER SERVICE IN THE ASEAN REGION

to adapt for the changes that the Economic Community will create.

One of the first impacts will be an increase in international visitors, so it will be important to meet the needs of new customers from different countries who bring with them increased expectations, especially on the standards of service. ASEAN is predicted to experience spectacular economic growth, with the tourism industry playing a major role in the development of the region as a popular destination for tourists. This article therefore examines the expectations of customers and service provision in order to focus on meeting and exceeding the needs of the customer. The provision of good customer service is an important part of the business cycle and in many cases, a positive element that keeps customers coming back.

What is Customer Service?

Literature often defines customers in different ways, but as a summary it is ‘anything we do for customers that enhances the customer experience’. Customers have different expectations as to what they expect from customer service. Nowadays the customer is no longer just satisfied by listening to courteous phrases or receiving a service with a smile and pretty face. The customer service professional must get to know his / her customer’s needs, and try to provide them with excellent customer service.

Definition: According to Turban et al. (2002), "Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer expectation."

Definition: ‘Good customer service is treating customers with a good attitude, helping them in a friendly manner and efficiently, and making sure they have a great experience with your products. This service will help customers make the best choices.’ (Doyle, online)

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DEVELOPING EXCELLENT CUSTOMER SERVICE IN THE ASEAN REGION

Customers often know want what they want, and when they want it.

Business owners need to position services to not only understand, but also accommodate clientâ&#x20AC;&#x2122;s sentiments and sensibilities. Customers are very reluctant to change purchasing habits if they are satisfied with the product; however, only slight frustrations or rude responses from service providers may lead to negative attitudes which could lead to customers not buying the product again and also to share the source of dissatisfaction with friends and colleagues.

Why is customer satisfaction important?

Dissatisfied customers will ultimately mean a decrease in people buying a service, so there is a need to develop more timely methods in assessing satisfaction levels of customers. Customer complaints, if unknown or ignored, can result in the failure of efforts and depletion in business. If a customer, for example, does not feel that the product and services are up to quality, then they will seek other places and competition will also take advantage of poor service.

Customer satisfaction is the evaluation of a guest whether or not the quality of a product & service meets their expectations. Performance that falls below expectations makes guests dissatisfied (Kotler & Keller, 2011). In the hotel industry, satisfaction of guests is in terms of their satisfaction with the product & service and the customer relations developed by hotel staff (Rousan, 2011; Parasuraman et al., 1985).

Customer satisfaction is therefore considered one of the most important outcomes of all marketing activities in a market-oriented firm. The obvious objective of satisfying a customer is to expand a business, to gain higher market share, and to acquire repeat and referral business, all of which lead to improved profitability (Carev, 2008). So according to Parasuraman, guest satisfaction is the level in which the expectations of a guest is met or exceeded.

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Benefits of providing excellent customer service Good customer service is an integral part of a service related business as it is the link between your business and the consumers that keep a customer satisfied and hopefully a loyal one. It can be difficult to attract new customers, so learning how to keep current customers through efficient service is vital too. You can have the best prices and the most convenient location, but with poor customer service you will not see too many returning customers. Just getting people through the door is not enough to run a successful business; loyal, returning customers should be the target for sustainability.

It is not possible to please everybody all of the time, but good customer service maximizes the proportion of customers who are satisfied and happy. These people will come back, and more importantly, they will spread the good word about your business.

Building a solid relationship with your customer base avoids that and satisfied customers will always provide the best source of advertisement for your company with positive word of mouth marketing.

The issue of providing good customer service has been discussed frequently, but with very good reasons why. Customer expectations depend on the price of the service and whether or not the customer believes they are receiving good value (Kotler et al, 2010). However, guest expectations always need to be met and where possible exceeded by providing additional benefits for the guest. It is those little additional touches that will be appreciated by most people; and it might be enough to turn the customers into loyal ones and keep them returning (Rhea solutions, online).

Barriers to excellent customer service There are both internal and external barriers that can pose problems to provide excellent customer service. In reality some of these barriers

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DEVELOPING EXCELLENT CUSTOMER SERVICE IN THE ASEAN REGION

to excellent customer service are within the control of customer service professionals. These are challenges that can be overcome through little effort by customer service professionals such as laziness; poor communication skills; poor accountability; poor time management; bad attitude; having a non-caring culture; lack of motivation; lack of adequate training; inability to handle stress; insufficient authority.

A business that avoids the above bad practice will enjoy significant customer service improvement over time and will develop a business culture in which employees continue to learn and use superior customer service skills. A customer service professional should also take the time to time self – evaluate themselves in order to ensure their professional effectiveness and to recognize their weak points and take measures to improve themselves.

How to Provide Excellent Customer Service?

“The only right way to run a company – and the most profitable way – is to saturate your company with the voice of the customer.”

Whiteley, (1991) According to Richard C. Whiteley, in his book “The Customer Driven Company” there are twelve points that provide excellent customer service. All Hospitality and tourism businesses are customer driven so it is a good idea to follow this general framework from Whiteley, 1991.

Drive everything in your business with a customer focus Ask the right questions Exceed customer needs and expectations Maintain happy employees Create and use service standards Have a written plan for ensuring excellence in customer service

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Deal effectively with the difficult customer Use follow up communications as a way to keep in touch with the customer Learn from your competitors and use their successes in your business Smash the barriers to excellence Offer your customers options Notify the management of issues you cannot personally resolve More over in the present economical time the customer oriented business should deeply invest in developing the skills and strategies that meet customers’ demands. As customer service professionals are the front line staff, they should be empowered to make some decisions to fulfil the customers’needs.

Customer Feedback It is very important to listen and get feedback from customers in order to improve customer service. Acting upon complaints quickly will also help show customers that issues are being dealt with in an efficient and responsive manner. Marketing donut (online) advise that customer feedback is not just for criticizing any deficiencies in service but it will help understand the strengths of the business as well by making sure the following actions are applied; 1.

2.

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Understand your customer needs.

Make it easy for customers to give their feedback Be honest Open feedback channels Customer surveys Measure service by checking the links between the ratings given to each 'moment of truth'

© CirVath ASEAN – International Journal of Tourism – N° 6

DEVELOPING EXCELLENT CUSTOMER SERVICE IN THE ASEAN REGION

The attitude of staff or customer representatives is also a big reason why many businesses lose customers, especially if there is an alternative competitor. If the service was impolite, unhelpful or lacks personal attention, customers think that they are not valued, and that the business only cares about receiving money, rather than providing a service that meets the wants and needs of the customer. It is therefore a good idea to look at other leading service companies and see how they think of their employees in a service oriented culture. For example Ritz-Carlton’s famous motto of ‘We are ladies and gentlemen serving ladies and gentlemen’ and Disney’s concept of referring to employees as ‘cast members’.

Conclusion As ASEAN looks towards one big Economic Community in 2015, excellent service will be a necessity in the tourism and hospitality industry. It is therefore imperative to deliver excellent customer service in a way that allows the customer to access the service in the most efficient, fair, cost effective, humanly satisfying and pleasurable manner possible. Hospitality and tourism establishments that want to provide excellent customer service have to address every aspect of customer management with equal intensity. Hospitality establishments that understand each of the elements involved in providing excellent service will be able to take advantage of the opportunities the tourism industry will provide throughout the ASEAN region and apply a customer service oriented approach for an enhanced reputation and a sustainable product.

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DEVELOPING EXCELLENT CUSTOMER SERVICE IN THE ASEAN REGION

References Bardi, J (2011), Hotel Front Office Management, 5th edition, John Wiley and Sons Carev, D. (2008). Guest satisfaction and guest loyalety study for hotel industry. College of Applied Science and Technology, Pro Quest Database Customer Satisfaction (2011) Case Study: The Links between Telework and Customer Satisfaction, http://www.gsa.gov/ graphics/admin/CustomerSatisfactionCaseStudyFINAL.pdf (accessed online January 2014) Doyle, A. http://jobsearch.about.com/od/retailinterviewanswers/qt/ goodcustomerservice (accessed online March 2014) Kotler, P & Keller, K (2011) Marketing Management, Prentice Hall 14th edition Kotler, P; Bowen, T & Makens, J (2010) Marketing for Hospitality and Tourism, Prentice Hall 5th Edition Marketingdonut, http://www.marketingdonut.co.uk/marketing/ customer-care/understanding-your-customers/how-to-usecustomer-feedback-to-improve-your-business (accessed online March 2014) Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985) A conceptual model of service quality and its implications for future research. Journal of Marketing, 49, 41-50.

Rousan, R. M. R. (2011). Hotel service quality and customer loyalty in Jordanian hotels: A case stady of marriott hotels chain.

University Saiance Malaysia Pula Pinang.

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DEVELOPING EXCELLENT CUSTOMER SERVICE IN THE ASEAN REGION

Rhea Solutions Limited (2012) Benefits of providing Good Customer Service; http://www.rhea-solutions.co.uk/Resources/Articles /Article-Detail/5/benefits-of-providing-good-customerservice (accessed online February 2014) Turban, E (2002) Electronic Commerce: A Managerial Perspective, Prentice Hall Whiteley R, C. (1991) The Customer Driven Company, Moving From Talk to Action, Perseus Books

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